Archive for March, 2014

Swap Spreads

Thursday, March 6th, 2014

Swap spreads are mostly unchanged today. One trader with whom I spoke responded that in the face of some massive corporate issuance spreads have not tightened much at all. He thinks that is a function of the level of rates and the mindset fostered by the Federal Reserve that the ...

GE Details

Thursday, March 6th, 2014

Via Bloomberg: General Electric 3 bln 2 part launched 750mm 10 yr +75 2.25 bln 30, yr +87.5 The IPT was 75/80 on the 10 year and 90 +/- 2.5 basis points.

Dudley and WSJ Interview

Thursday, March 6th, 2014

Federal Reserve Bank of New York President William Dudley sat for an interview with the Wall Street Journal this morning. He offered two noteworthy observations. He suggested that the bar to end or defer QE is quite high. Yes, we already believe that but one of the most powerful and ...

Treasury Market Update

Thursday, March 6th, 2014

Prices of Treasury coupon securities are taking a battering today as a confluence of events conspires to drive yields higher. I would place initial  blame on the Bund market in which the 10 year Bund is selling off harder than the 10 Year Treasury. Some of the Treasury decline is ...

Corporates Today

Thursday, March 6th, 2014

Via Bloomberg: Nedwaterschaps Bank 1.75 bln Aaa/AA+  5 yr launched ms +29 CF Industries, Inc. 1.5 bln (ng) Baa2/BBB- 2 part  20 & 30 yr 101% coc Put ipt 20 yr +170-175 30 yr +187.5 area General Electric Co B'Mark Aa3/AA+ 2 part  10 & 30 yr ipt 10 yr +90 area 30 yr +105 area Omega Healthcare Investors, Inc. ...

MBS

Thursday, March 6th, 2014

Mortgages opened slightly tighter to Treasuries this morning as the sell off in the Treasury market influences rates there more than in MBS space. I have heard of some money manager selling in early trading and little else.

CRT Capital on Overnight Treasury Flows

Thursday, March 6th, 2014

OVERNIGHT FLOWS:  Treasuries were little changed overnight ahead of the BOE and ECB meetings.  Overnight volumes were mixed with cash trading at 102% of the 10-day moving-average, while TY came in at 77% of norms.  5s were the most active issue, taking a 37% marketshare, while 10s took 23%.  3s ...

Cutting Bond Focus in Japan

Thursday, March 6th, 2014

A fully paid up subscriber forwarded  this Bloomberg story which provides a rationale for the jump in equities in Japan overnight. The story reports that a government body told the largest pension fund that it should focus less on domestic bonds and should you wage gains as its performance bogey ...

Aussie Dollar Comments via Mark Chandler

Thursday, March 6th, 2014

Via Mark Chandler of Brown Brothers Harriman: Second, after extending its losses on Monday, the Australian dollar's recovery has been extended and is trading near last week's highs after two incredibly strong reports.  The January trade surplus was 14x larger than economists expected.  The A$1.43 trillion surplus was the third consecutive ...

FedSpeak Today

Thursday, March 6th, 2014

Several major domos from the Federal Reserve will speak today and among them is Dudley of the New York Fed. He will speak this morning at 815AM New York time. Via Bloomberg; * 8:15am: Fed’s Dudley at Wall St. Journal event in New York * 1:00pm: Fed’s Plosser speaks in London * 6:00pm: Fed’s ...