Archive for February, 2014

Treasury Market Update

Monday, February 10th, 2014

The Treasury market has reversed field and it has surrendered some of the gains that it had achieved in overnight trading. I have not heard of any real outburst of activity. With the back up in rates there has also been some unwinding of the overnight steepening. So 5s 10s ...

Supply This Week

Monday, February 10th, 2014

There is a heavy chunk of supply this week in the US with the quarterly refunding and heavy bill sales. The Treasury will actually sell a $50 billion 72 day cash management bill. In addition to the US European nations will engage in some heavy issuance. Tomorrow the Netherlands will ...

Adjudicating the OMT in Europe

Monday, February 10th, 2014

A German court ruled last weak that the Outright Market Transaction scheme of the ECB is probably an overreach by the ECB but referred the case to the European Court of Justice for a definitive decision. Here is Mark Chandler of Brown Brother's on that topic. This is an excerpt ...

February 10 2014 Opening

Monday, February 10th, 2014

Prices of Treasury coupon securities have registered modest gains in overnight trading as the era of bond market good feeling generated by the ambiguous but weak in the mind of some labor report underpins the market. There was not a flood of data overnight and I think that gains should ...

Inquisition of Sorts

Sunday, February 9th, 2014

President Obama has nominated Stanley Fischer to be the next Vice Chairman of the Federal Reserve System. He holds dual citizenship in Israel and the United States. Previously he served as governor of the Bank of Israel and he has served at the World Bank and the IMF. He also ...

Escalating Tensions in South China Sea

Sunday, February 9th, 2014

The FT carries an article on escalating tensions in the South China Sea as rising superpower  China seeks to exercise greater hegemony in the region. According to the article the US has blamed rising tension in the region solely on China and has warned that the US could move additional ...

Yellen Testimony Text

Sunday, February 9th, 2014

I was just scrolling about the world wide web checking news and picked up a little nugget about which I was uninformed. Ms Yellen will make her inaugural speech as Chairperson of the Federal Reserve before Congress on Tuesday morning at 1000AM. However, her prepared text will be available on ...

Esoteric Labor Market Data

Sunday, February 9th, 2014

The WSJ has a piece on the quit rate in the labor market. When that data shows employees quitting jobs it is an indicator of health in the job market as it is signal that those quitting are confident that they will successfully land a new gig. There is more ...

Treasury Market Update Once More

Friday, February 7th, 2014

Treasury market participants are lamenting the lack of volume on what should be a busy day. Salesman and traders recount active trading immediately following the data this morning and then (to coin a phrase) a tapering of end user client activity. Most with whom I have spoken think that hedge ...

Treasury Market Update

Friday, February 7th, 2014

One Long Bond trader reporting modest buyers of bonds as fast money unwinds profitable steepeners.