Archive for March, 2014
Thursday, March 13th, 2014
This is a research piece from SocGen and it dissects recent data from China and posits that GDP is heading to something much closer to 7.0 than the official 7.5 percent target. In my previous post which was an excerpt from Mark Chandler's morning piece he alluded to a possible ...
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Thursday, March 13th, 2014
Mark Chandler with some thoughts on China.
Via Mark Chandler of Brown Brothers:
he market has shrugged off disappointing Chinese data that show a distinct loss of momentum. The period covers both January and February as an effort to smooth the Lunar New Year holiday distortions. Retail sales rose 11.8% y/y, while ...
Posted in Uncategorized | Comments Off on Thoughts on China
Thursday, March 13th, 2014
China's Premier spoke overnight and specifically said that more defaults in that country are inevitable. He added, however, that the government will take steps to ensure that the do not pose a threat to the financial system.
Posted in Uncategorized | Comments Off on Defaults in China
Thursday, March 13th, 2014
I overslept today so this is the extremely truncated version of what I usually write.
Dealers report fast money sellers of 10s. Holders of credit product sold 7 year sector paper and central banks sold the 7 year note itself. Central banks bought 2 year through 7 year spread product. Real ...
Posted in Uncategorized | Comments Off on Overnight Flows
Wednesday, March 12th, 2014
Mortgages are holding in fine even as Treasuries rally. Thirty year paper is 1 to 1+ tighter to Treasury paper while 15 year paper is unchanged to Treasuries. Dealers report light activity and hence slight selling only by originators.
Posted in Uncategorized | Comments Off on MBS
Wednesday, March 12th, 2014
Via CRT Capital:
*** The auction was strong with a 0.8 bp stop-through and non-dealer bidding at 70.9% vs. 61% norm ***
* 10-year auction stops at 2.729% vs. 2.737% 1-pm bid WI.
* Dealers were awarded 29.1% vs. 39% average of last four 10-year Reopenings.
* Indirects get 43.4% vs. 42% norm.
* Directs ...
Posted in Uncategorized | Comments Off on Auction Results
Wednesday, March 12th, 2014
I posted my thoughts on 10 year auction earlier today. Here is the view from CRT Capital:
Via CRT:
10-year auctions have met relatively strong receptions lately with four of the last six stopping-through for an average of 0.9 bp vs. two tails averaging 0.5 bp. All four of the most recent ...
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Wednesday, March 12th, 2014
Apparently some of the deep dive in stocks and the testing of pre labor report levels was a response to the explosion at Park and 116th.
Posted in Uncategorized | Comments Off on Explosion
Wednesday, March 12th, 2014
One of the habits I developed over my long and illustrious career was to take a run of Treasuries moments before major events such as the labor report. On Friday at 825 AM the yield on the 5 year note was 155.7 (currently 1.574). The other benchmark issues are each ...
Posted in Uncategorized | Comments Off on Bond levels Relative to Pre labor Report
Wednesday, March 12th, 2014
Via Bloomberg:
$3b(e) European Investment Bank (EIB) Aaa/AAA Global 7Y MS +22 BNP/DB/JPM
$b Australia & New Zealand Banking Grp (ANZ)
A3/BBB+ 144a/Reg-S Subordinated 10Y
IPT +180-185 ...
Posted in Uncategorized | Comments Off on Updated Corporate Bond List