Archive for February, 2014
Tuesday, February 4th, 2014
This story is on Bloomberg early this morning and describes and discusses a phenomenon which is one key factor supporting Long Bonds and limiting any increase in rates. Last year was a stellar year for equities in many markets and the UK enjoyed the fruits of that rally. That rally ...
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Monday, February 3rd, 2014
I think the classic definition of deflation includes the situation in which corporations have lost pricing power. Here is a long WSJ piece on an eclectic group of American companies which confront that distasteful situation.
Via the WSJ:
Firms Pinched by Pressure to Hold Down Their Prices
Low Prices Keep a Lid on ...
Posted in Uncategorized | Comments Off on A Whiff Of Deflation In the Corporate Air
Monday, February 3rd, 2014
Richard Gilhooly is a friend and former colleague. He is an interest rate strategist at TD Securities and this is his entire end of day piece to clients. He makes a very compelling case that the pain is not yet over and risk assets will be not be in vogue ...
Posted in Uncategorized | 1 Comment »
Monday, February 3rd, 2014
The yield curve has not shifted very dramatically today even with the sharp drop in rates. The 5s 10s spread is 114.8 basis points at the moment versus 115.8 at 600AM this morning. The 10s 30s spread is 0.1 basis points wider at 96 basis points and 5s 30s at ...
Posted in Uncategorized | 4 Comments »
Monday, February 3rd, 2014
Via the Good Folks at Bloomberg:
RATES RESEARCH ROUNDUP: UST Yield, Positioning Views
2014-02-03 17:47:52.239 GMT
By Monika Grabek
Feb. 3 (Bloomberg) -- Views on 10Y UST yields following
last week’s FOMC taper announcement as focus shifts to January
payrolls report on Friday.
* Barclays
* Maintain short duration amid EM concerns in intermediate
sector via current 7s
* Payroll ...
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Monday, February 3rd, 2014
The bond market has rallied sharply over the last several hours as a confluence of factors drives investors to the safe sanctuary of fixed income. When I wrote early this morning I noted that the emerging market currencies were depressed but statically so. That is not the case now. The ...
Posted in Uncategorized | Comments Off on Treasury market Update
Monday, February 3rd, 2014
Secretary of the Treasury Lew has written to Congress that we will hit debt ceiling by the end of month and that quickly thereafter the till will be empty. In previous iterations of this kabuki dance the Treasury could take steps to extend the deadline at which the fisc is ...
Posted in Uncategorized | Comments Off on Debt Ceiling Agonies
Monday, February 3rd, 2014
Swap spreads are unchanged to maybe 1/4 basis point tighter in the belly of the curve. I have heard of prop traders receiving 10 year spreads and paying 30 year spreads. Black box types are just payers in the belly.
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Monday, February 3rd, 2014
Via Marginal Revolution.
Posted in Uncategorized | Comments Off on Bernanke to Brookings
Monday, February 3rd, 2014
Credit Spreads are mixed this morning. bank and finance paper is one basis point to two basis points tighter. Industrials are unchanged while some of the high beta exploration and tech names are one basis points tighter. I have not heard of any issuance at this hour and one syndicate ...
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