Archive for February, 2014

Treasury Update

Monday, February 3rd, 2014

US fixed income markets are posting slightly more robust declines than evident when I first wrote this morning. I do not have one solid reason for the move. Equity markets have rebounded and most European bourses are now positive after opening weaker. US futures have also turned and are also ...

Midterm Election Year Senate Review

Monday, February 3rd, 2014

The history of US mid term elections since World War 2 shows that a two term President's party often faces a daunting task in that sixth year election. That may be the case this year for the Democrats as President Obama's popularity has declined in many key states and if ...

Overnight Treasury Flows

Monday, February 3rd, 2014

I failed to report overnight Treasury flows earlier. I have heard of Japanese banks selling the 7 year sector and central bank buyers of the belly. With much of Asia closed for the New Year volume was 88 percent of the 10 day moving average.

Euribor

Monday, February 3rd, 2014

There will be a new agent to calculate Euribor in May. The front end maven who passed that story along notes that the press release makes no mention of a methodology change so the assumption is that the calculation will be performed as it has been currently.

February 03 2014 Opening

Monday, February 3rd, 2014

Prices of Treasury coupon securities are registering modest price declines in an overnight session muted by the lunar new year which has many in Asia on holiday this week. Equity markets around the globe are beginning February where they finished January as most are in the red. The Nikkei declined ...

Janet Yellen Takes the Reins and Reigns

Monday, February 3rd, 2014

Politico.com has joined the media chorus welcoming  Janet Yellen to the helm of the Federal Reserve. (As an aside I wonder for how long we will have to suffer through a line which relates to the reader that the new Chairperson is the first in the Federal Reserve to carry ...

Sunday Evening Hilsenrath

Sunday, February 2nd, 2014

Hilsenrath with an article in the WSJ on Yellen's first challenge:divining a reason for the drop in the unemployment rate.The article breaks little new ground and without ever using the phrase "participation rate" it is largely about that and understanding the implications of the fall in that rate for policy ...

HSBC on Q1 and Q2

Sunday, February 2nd, 2014

HSBC expects a slowdown in GDP growth to 2.5 percent from the 3.0 percent growth of the second half of 2014. The firm notes that net trade and inventory accumulation drove GDP growth in the second half of 2013 and believes those drivers will fade in 2014. The report points ...

Spelling Entendre

Sunday, February 2nd, 2014

This is Action Economics with a fun little spelling twist as it welcomes the reign of Janet Yellen at the helm of the Federal Reserve System. Via Action Economics:   "U.S. markets will welcome Janet Yellen to her new post as QEeen of the FOMC. We wish her luck. She and the rest ...

From the Oh Canada Bubble Department

Sunday, February 2nd, 2014

I received a heads up on this from a fully paid up subscriber. It describes a fixer upper house in Toronto which traded 150K above the offered side.