Archive for February, 2014
Thursday, February 13th, 2014
Prices of Treasury coupon securities have registered solid gains in overnight trading as a risk off mentality percolates through global markets. The proximate cause of the apprehension and risk aversion is the story about the default of a shadow banking entity in China. I have posted about the story here ...
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Thursday, February 13th, 2014
I thought I posted this FT article previously but I guess I had a technical glitch. The world is in risk off mode this morning with equity markets sliding and the yen trading again with a 101 handle. Bond markets are posting robust gains. The proximate cause is a technical ...
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Thursday, February 13th, 2014
I posted an article a few minutes ago from the FT on the technical default of a shadow banking entity in China. Here is another article on the topic from an entity called International Business Times.
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Wednesday, February 12th, 2014
Via Bank of America Merrill Lynch:
Preparing for another snow day. With not one, but two, storms hitting large parts of the Midwest and Northeast last week, not surprisingly our BAC internal card spend data remained weak the first week of February. Retail card (credit+debit) spend ex. gas declined 1.1% last ...
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Wednesday, February 12th, 2014
Standard and Poor's with a report on the travails the Chines banking sector will face in the upcoming year. Here is a summary paragraph:
The Chinese banking sector's asset-quality pressures are likely to persist in 2014.
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We expect banks' profitability to drop but remain adequate during the year.
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A stabilized domestic economy and ...
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Wednesday, February 12th, 2014
I regularly post articles here which reflect on the shortcomings of ObamaCare and the incompetent roll out of that government intrusion into medicine. However, to be fair and balanced (to coin a phrase) I offer this appraisal of the current state of ObamaCare from Politico.com. The salient point of that ...
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Wednesday, February 12th, 2014
Richard Gilhooly is an interest rate strategist (and a friend) at the newest primary dealer TDSecurities. Here is his note to clients on the 10 year auction at 100PM:
Via Richard Gilhooly:
Today at 11:45 AM
The $24bn new 10yr note auction at 1pm has seen nearly a 20bp correction from the low ...
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Wednesday, February 12th, 2014
Mortgages are now 1 to 1+ wider on the day on the back of real money selling Fifteen year paper is unchanged. Origination is light at $400 million and the trader who wrote this particular note believes that the street is long MBS.
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Wednesday, February 12th, 2014
Mortgages a tad tighter on the day. FNMA 4 1/2 slammed yesterday by fast money selling but some end user buyers have emerged and the issue is rebounding today.
In Treasury land there has been some chunky real money selling in the 10 year sector. There was a big buyer in ...
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Wednesday, February 12th, 2014
Corporate bond spreads are mostly unchanged today but the tone and texture of that marketplace is firm and robust. Investors are once again in the mode of seeking yield in any bond with a modicum of credit quality to it. For example, British Telecom brought a 3 year and a ...
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