Archive for February, 2014

Yen

Wednesday, February 5th, 2014

Yen raced to 100.80 and quickly turned around. That is the third failed attempt at that level in last five trading sessions. We are now at a local low for yen at 101.30. I have talked to Treasury guys who want to be short 10s close to or through 2.60 ...

Moody’s Debt Ceiling Comment

Wednesday, February 5th, 2014

Via Bloomberg:

Swaps

Wednesday, February 5th, 2014

Swap spreads are what I like to call violently unchanged. They are actually mixed but the changes are very small. The level of activity there has declined with the tapering (bad word) of corporate issuance. I have heard of some fast money receiving for very modest size in 10s and ...

Miscellany

Wednesday, February 5th, 2014

I am flummoxed by yen strength this morning. It is trading low 101s and had breached that level and then retreated.I do not see the risk off catalyst for the move as EMs are stable for now as are equity markets. In addition, income data in Japan overnight was weak ...

Treasury Borrowing Advisory Committe

Wednesday, February 5th, 2014

This group released its minutes at 830AM. Here is an excerpt: "Next, the Committee turned to the question of whether Treasury’s issuance schedule remained appropriate given the required financing needs.  After a brief discussion of the fiscal outlook, the Committee unanimously recommended that Treasury consider reductions in auction sizes for its ...

Dow Industrial 200 Day Moving Average

Wednesday, February 5th, 2014

For those of you who keep score at home it appears to me that the Dow Jones Industrials pierced their 200 day moving average recently. The Dow closed at 15,445 and the 200 day moving average clicks in at 15,474. I note that because the last time we were significantly ...

Greek package

Wednesday, February 5th, 2014

Times do change as three years ago would have prompted frantic trading. The EU is considering extending the maturity on certain loans to Greece to 50 years from 30 years and reducing the interest rate on those loans. Sounds like a consummation for which any dead beat would devoutly pray ...

Stagnant Wages in Japan

Wednesday, February 5th, 2014

One of the goals of the much vaunted and praise Abenomics is to raise wages in Japan. That endeavor is proving to be a tough task as data released last night show stagnation rather than growth. This story is in sync with several stories I posted yesterday. Via the FT: February 5, ...

February 05 2014 Opening

Wednesday, February 5th, 2014

Prices of Treasury coupon securities are registering modest gains in overnight trading. The bete noir for the market place since last week has been emerging market currencies and they have stabilized and improved for most of this week. For example, the Russian ruble traded as cheap as 35.5 yesterday but ...

CBO and ACA Revisited

Tuesday, February 4th, 2014

I posted earlier today on the CBO analysis of ObamaCare and its conclusion that over the next decade there would be more than two million fewer folks gainfully employed than if there was no ObamaCare as  currently constructed. To be fair and balanced (to coin a phrase) the Administration has ...