Archive for March, 2014
Monday, March 3rd, 2014
Mortgages are closing the day unchanged after being as many as five ticks wider early in the day. That is a stellar performance in a sea of risk aversion and results from what one dealer referred to as "heavy lifting by the Federal Reserve". In non jargon terms they bought ...
Posted in Uncategorized | Comments Off on MBS Close
Monday, March 3rd, 2014
One market indicator which flummoxes me today is the yen. it is trading at 101.40 and has cheapened since about 630AM when I marked it at 101.25. In my always humble opinion I would think that with as much uncertainty as there is swirling about the forum I would have ...
Posted in Uncategorized | 2 Comments »
Monday, March 3rd, 2014
I sent this out last evening and it chronicles the rise in margin debt. It cites the explosion in margin debt as the principal reason for the market's drive to all time highs. I have not had alot of success discussing this on the phone so I thought I would ...
Posted in Uncategorized | Comments Off on Margind Debt Exploding Reprise
Monday, March 3rd, 2014
Prices of Treasury coupon securities have been mired in a narrow range since trading began last evening. The 10 year note has essentially traded between 2.62 and 2.60. I believe that it traded as low as 2.59 but that was quite fleeting. Market participants with whom I have the honor ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, March 3rd, 2014
Liberty Street Economics is the blog of the Federal Reserve Bank of New York and the authors there write some informative stuff. In this post they suggest that the effects of QE on financial conditions is similar to the effect of conventional policy changes.
Posted in Uncategorized | Comments Off on Effects of QE on Financial Conditions
Monday, March 3rd, 2014
That is the take of Millan Mulraine an economist and former colleague at TDSecurities.
Via TD Securities:
The US manufacturing sector regained positive momentum in February with the headline index rising to an above-consensus 53.2 print. This was above the 51.3 estimate the month before and was well in excess of the ...
Posted in Uncategorized | Comments Off on Strong ISM Shows Economy Weathering the Winter Soft Patch
Monday, March 3rd, 2014
Mortgages are lagging Treasuries today with 30 year paper 3 ticks to 5 ticks wider. The 15 year sector lags Treasuries but outperforms 30 year paper by 1 tick to 2 ticks. One dealer notes that Fed purchases have contorted the market. The trader wrote that there is a highly ...
Posted in Uncategorized | Comments Off on MBS
Monday, March 3rd, 2014
Swap spreads are about 3/8 basis point wider this morning. Fast money accounts have been observed paying in 3s and 10s. The Treasury market strength has left swaps in the dust. There is light corporate issuance and the names coming to market do not look like swappers. In addition the ...
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Monday, March 3rd, 2014
A pretty mundane group thus far and thanks to Bloomberg:
Consolidated Edison Company of New York, Inc B'Mark A2/A- 30 yr
6 mo par call prior
ipt +mid 90's
Public Service Colorado 300mm (ng) A1/A 30 yr fmb
6 mo par call prior
ipt 90 area
Rogers Communications 500mm Baa1/BBB+ 30 yr
ipt + hi 160's
Posted in Uncategorized | Comments Off on Today’s Corporate Bond issuance Thus Far
Monday, March 3rd, 2014
Via the good folks at Bloomberg:
IG CREDIT: $117.7b Priced in Feb., Down From $157.9b in Jan.
2014-03-03 12:37:53.280 GMT
By Lisa Loray
March 3 (Bloomberg) -- $117.7b priced in February, down
from $157.9b in January; YTD volume at $275.56b
* Domestic corps (39%) outpaced financials (29%) and yankee
corps (4.5%) as companies left earnings blackouts, a
reversal ...
Posted in Uncategorized | Comments Off on February Corporate Issuance Recap