Archive for March, 2014

Eurozone Money Supply

Thursday, March 27th, 2014

I do not think I have ever peruses EU money supply data before but Action Economics carries a report on that data this morning. Money supply expanded a little over 1 percent but credit creation is stagnant and provides another reason for ECB to adopt unconventional policies. Via Action Economics: The European ...

Mark Chandler on China

Thursday, March 27th, 2014

Via Mark Chandler of Brown Brothers Harriman: Investors continue to keep a watchful eye on Chinese developments.  The dollar traded in its narrowest range of the week against the yuan but it is still firmer, just above CNY6.21.  The focus instead seemed to shift to the money market, where the PBOC ...

Quick Note on Result of 5 Year Note Yesterday

Thursday, March 27th, 2014

The 5 year note auction yesterday was very strong and stopped more than 1 basis point through market levels at bidding time. Dealers also received less of this issue (25.9 percent) than of any other 5 year note since record keeping on this subject began in 2003.

Fed Bullard in Hong Kong

Thursday, March 27th, 2014

Saint Lous Federal Reserve Bank President Bullard spoke at a conference in Hong Kong last night. He is concerned about asset bubbles and does not want a replay of the 2004 through 2006 period. He thinks that rates will remain low for a considerable period ( and he did not append ...

Asset Backed Paper in Europe

Thursday, March 27th, 2014

The European market for asset backed securities is moribund and the FT reports that in an effort to encourage lending regulators will ease capital requirements and make it easier for insurance companies to hold paper. Mario Draghi has also noted that the ECB might buy such paper if a market ...

March 27 2014 Opening

Thursday, March 27th, 2014

Prices of Treasury coupon securities have posted mixed results when compared to levels which prevailed around 815PM last night but still remain close to the best levels attained yesterday in the aftermath of the successful 5 year note auction. In this instance the yield on the 10 year note is ...

Late Comment on Flows

Wednesday, March 26th, 2014

I was away from acrossthecurve.com global headquarters for much of the afternoon. Here is an aggregation of flows from a bunch of emails I just read. US clients selling front end of Treasury curve and international clients buying. Some fast money clients taking profits in the up trade post the 5 year ...

Today’s Treasury Volumes

Wednesday, March 26th, 2014

Via CRT Capital: Wednesday’s volume profile was lackluster during the overnight session as cash traded at just 74% of the 10-day moving-average, but activity steadily improved throughout the day to end at 93% of the 2-week norms.  Raising volumes into the rally were arguably constructive, but today was by no means ...

End of Day Commentary from TDSecurities

Wednesday, March 26th, 2014

Richard Gilhooly is a former colleague and still a friend and the interest rate strategist at TDSecurities in New York. Here is today's edition of his end of day commentary. He calls into question the conventional wisdom of the "herd" on weather effects and GDP. Via Richard Gilhooly at TDSecurities : Bonds ...

Swaps

Wednesday, March 26th, 2014

Swap spreads finished mixed today. Spreads in 2 year and 3 years were 1.25 basis points wider. Five year spreads were .75 basis points wider and 7s and 10s were unchanged.Real money was a was a better payer of spreads in the belly.