Archive for March, 2014
Wednesday, March 26th, 2014
Via Bloomberg:
$tbd Sumitomo Mitsui Financial Group (SUMIBK)
Baa2/BBB+ Barc/C/GS/SMBC Nikko
144a/Reg-S subordinated Tier 2 10Y
IPT +High-100s area
$1b Export Development Canada (EDC) Aaa/AAA
Global 3Y IPT MS -2 area BAML/BNP/HSBC/Scotia
(NoGrow)
Posted in Uncategorized | Comments Off on Early Corporate Issuance
Wednesday, March 26th, 2014
These headlines are several hours old but unless you are an insomniac I am guessing you did not see them.
26-Mar-2014 14:15 - HONG KONG -ST. LOUIS FED PRESIDENT JAMES BULLARD
SAYS THINKS U.S. UNEMPLOYMENT RATE TO GET DOWN BELOW 6 PCT BY THE END OF
THIS YEAR
26-Mar-2014 14:17 - HONG KONG -ST. ...
Posted in Uncategorized | Comments Off on Bullard Headlines While You Slept
Tuesday, March 25th, 2014
One of the searing episodes of the late and lamented financial crisis was the post Lehman moment when a money fund broke the buck because of some risky investments in Lehman Brother paper which defaulted. That prompted a run on the money funds as institutional money took flight for the ...
Posted in Uncategorized | Comments Off on Money Fund Regulation: Not
Tuesday, March 25th, 2014
The research group at the Federal Reserve Bank of New York has authored a paper which concludes (unsurprisingly) that large banks enjoy a financing advantage over small banks and that advantage is a taxpayer driven subsidy. The subsidy derives from the belief that the to big too fail banks will ...
Posted in Uncategorized | Comments Off on Too Big to Fail Banks Enjoy Taxpayer Subsidy
Tuesday, March 25th, 2014
I have been away from acrossthecurve.com sprawling and palatial headquarters for a couple of hours.
Dealers report lots of unwinds of short the belly positions by macro based clients and fast money traders . Most of that has been in 5s 30s and 7s 30s. Hedge funds have been sizable buyers ...
Posted in Uncategorized | Comments Off on Treasury Market Flows
Tuesday, March 25th, 2014
The Treasury will auction $32 billion 2 year notes at 100PM New York time. Most 2 year note on very pedestrian affairs and auction without a tail. The new wrinkle in this one is that sentiment regarding the Federal Reserve has shifted and post the Yellen press conference there a ...
Posted in Uncategorized | 4 Comments »
Tuesday, March 25th, 2014
Via TDSecurities:
Consumer sentiment rebounded more strongly than anticipated in March, with the Conference Board survey showing confidence rising to 82.3 from 78.3. While daily tracking polls earlier in the month suggested that geopolitical concerns may have weighed on confidence, it appears that broader confidence gauges were largely unaffected. The survey’s ...
Posted in Uncategorized | Comments Off on TDSecurities on Today’s Data
Tuesday, March 25th, 2014
Swap spreads are mixed and a little boring this morning. As one salesman just noted participants are more interested in the outsized under performance of the bond this morning. He thought that it was a macro based seller who would then have a significant bid for the 5 year note ...
Posted in Uncategorized | Comments Off on Swap Spreads
Tuesday, March 25th, 2014
I regularly mark yields on benchmark Treasuries and when I did that back at 739AM New York time the yield on the bond was 3.568. As of this writing at 828AM the yield has climbed 3 basis points to 3.598. In that same period 10s 30s steepened 1.7 basis points ...
Posted in Uncategorized | Comments Off on Long Bond Deteriorates (Finally)
Tuesday, March 25th, 2014
Via Bloomberg:
2Y Repo Specialness Result of Shorts, Japanese Fiscal Year-End
2014-03-25 12:15:48.997 GMT
By Alexandra Harris
March 25 (Bloomberg) -- Current 2Y continues trading
special before U.S. sells $32b 2Y notes today and Japanese
fiscal year-end this week.
* Japanese fiscal year-end may be exacerbating 2Y repo
specialness as banks often stop lending out securities,
Credit Agricole strategist ...
Posted in Uncategorized | Comments Off on Repo Pain in 2 Year Note