Archive for March, 2014

Corporate Bonds

Tuesday, March 18th, 2014

Corporate bond spreads are quite firm again today. Exxon Mobil set the tone yesterday with its multi tranche deal which was a food fight. The giant oil company sold 3s 5s and 10s. The 3 year priced on topic of agency paper at +15. The 5 year priced at +25 and ...

Swaps

Tuesday, March 18th, 2014

Swap spreads are unchanged thus far this morning. Dealers report that the one trade that active trading types are looking at is paying 30 year spreads. Corporate calendar light thus far so there should be no impetus to tighten from that sector.

JPMorgan Weekly Duration survey

Tuesday, March 18th, 2014

Via Bloomberg: JPM survey for 17 March---- All Clients Long    17  up from 15 Shorts  25 down from 26 Neutral 58 down from 58 --------------------------------- Actives Long    15  up    from 8 Shorts  31 down from 38 Neutral 54 unchanged ----------------------------------------------------- In the week prior Active longs had dropped from 23 to 8, and shorts increased from 23 to 38......so ...

More Flow Information

Tuesday, March 18th, 2014

I received info from another dealer and here are some additional overnight flows. Real money and fast money bought 10s. Central banks bought 2s and banks received 3s and 10s.

Rising land Prices in Japan

Tuesday, March 18th, 2014

The yen benefits from the geopolitical uncertainty surrounding the Ukraine but this story also gave it some strength. land prices in Japan rose for the first time in six years and some are crediting Abenomics for those gains. Via the FT: Economy Japanese metropolitan land prices rise for first time since 2008 3 hours ...

March 18 2014 Opening

Tuesday, March 18th, 2014

Prices of Treasury coupon securities have rebounded in overseas trading as confluence of economic and geopolitical factors combine to reignite a bit of risk off mentality. There is renewed concern about Ukraine situation as Putin was scheduled to speak this morning to the Russian Parliament and market participants await his ...

Yuan Weakness May Trigger More Losses

Tuesday, March 18th, 2014

One of the Blogs at the FT has this interesting story on structured products which would incur significant losses if the yuan trades back to 6.20 to the greenback. It seems some investors who believed they had a sure think now have sweaty palms. Via the FT: Markets Renminbi approaches "red line" 3 hours ...

Different Weather Effect: Drought and Food Prices

Tuesday, March 18th, 2014

The WSJ is carrying a comprehensive article on the effects of drought in various parts of the world on food prices. California is suffering under the influence for a very severe drought  and the dry weather has resulted in higher prices for meat and vegetables. Brazil is also feeling the ...

Quiet Day

Monday, March 17th, 2014

Everyone I spoke with today repeated the same mantra that it was exceedingly quiet. David Ader of CRT Capital reports that volume today was just 64 percent of the 10 day moving average. Via David Ader of CRT Capital   Monday’s volume profile offered steadily trend – after starting at 83% of the ...

Swaps

Monday, March 17th, 2014

Swap spreads finished mixed today as 2 year and 3 year spreads tightened about 3/4 basis points as geopolitical fears faded. The rest of the swaps curve was unchanged. Real money established 5 year 10 year flatteners in rate space and an eclectic crowd paid 5 year rates.