Archive for March, 2014

Swap Spreads

Tuesday, March 4th, 2014

Swap spreads are 1/4 to 1/2 basis points tighter  across the curve as swaps benefit from the debacle across town in the Treasury market.  Hope springs eternal and there is also belief that some of the myriad corporate issues on the docket today will generate swapping and that flow if ...

Treasury Market Update

Tuesday, March 4th, 2014

Prices of Treasury coupon securities are still under severe pressure as euphoria permeates every nook and cranny and crevice of the financial world. I wonder how the financial world responded when the aristocratic fellow with the umbrella chortled "peace in our time" nearly four decades ago. A reading of history ...

Corporate Bond Musings.

Tuesday, March 4th, 2014

My previous note was on corporate bonds and it detailed the huge number of deals and tranches coming to market today. I spoke with a salesman (he is an expert on the 40 percent times table) and he attributes the heavy deal flow to the volte face in risk sentiment. ...

Active Corporate Calendar Today

Tuesday, March 4th, 2014

There are quite a few deals on tap today and some of them are not exactly household names. Via the good folks at Bloomberg: $b   Bank of Tokyo-Mitsubishi UFJ (MUFG)  Aa3/A+ $   3Y FRN    3ML +equiv    144a/Reg-S $   3Y   +70-75      BAML/JPM/MUS/MS $   5Y   +95 area $  10Y    +120 area $b   Citigroup Inc (C)   Baa2/A-      Citi $   3Y FRN  3ML +equiv  ...

JPM Weekly Client Survey

Tuesday, March 4th, 2014

All Clients Long     Neutral     Short March 03              17          62               21 Feb 24                    19          56               25 Feb 18                     21         62                 17 4 week average   18      60                  22 52 week average   16    63                 21   Active Clients Long      Neutral      Short March 03                      23        54                 23 Feb 24                              24      38                 38 Feb 18                             31        61                    8 4 week average            23      54               23 52 week average           15     58                 ...

Overnight Flows

Tuesday, March 4th, 2014

David Ader of CRT Capital on overnight activity: OVERNIGHT FLOWS: Treasuries were under pressures throughout the overnight session as reports of de-escalation in the Ukraine have led a rebound in risk assets.  Overnight volumes were strong with cash trading at 135% of the 10-day moving-average, while TY came in at 125% ...

G 20 Inflation Still on the Decline

Tuesday, March 4th, 2014

Via WSJ: G-20 Inflation Eased Again in January Rise in Consumer Prices in World's Largest Economies Slowed for Second Straight Mont By Paul Hannon connect March 4, 2014 6:00 a.m. ET The rise in consumer prices slowed across the world's largest economies for a second straight month in January, driven by falling inflation rates in several large ...

Soft Wages in Japan

Tuesday, March 4th, 2014

Mark Chandler reports on soft wage data in japan overnight: Via Mark Chandler at Brown Brothers: Third, in Japan wage earnings fell 0.2% in January, the first decline in three months.  The December increase was revised to 0.5% from 0.8% initially.  The limited wage increases remain one of the key shortcomings thus ...

Putin Headlines

Tuesday, March 4th, 2014

One dealer included this lengthy list of informative headlines from the Putin press conference in his morning note and I think they are worth sharing to provide some flavor: *PUTIN: UKRAINE'S YANUKOVYCH AGREED TO COMPROMISE FEB. 21 *YANUKOVYCH HAD NO CHANCE FOR RE-ELECTION, PUTIN SAYS *UKRAINE USED TO ONE SET OF CROOKS REPLACING ...

March 04 2014 Opening

Tuesday, March 4th, 2014

Prices of Treasury coupon securities have tumbled in overnight trading as tensions in the Ukraine have deescalated. Russian Czar Putin announced that Russian troops on the Ukraine border would return to bases in Russia and markets rallied on that news. He did not say anything about the troops already on ...