Archive for March, 2014

Early Corporate Issuance

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)

Bullard Headlines While You Slept

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. ...

Money Fund Regulation: Not

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 ...

Too Big to Fail Banks Enjoy Taxpayer Subsidy

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 ...

Treasury Market Flows

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 ...

Two Year Note Auction Today

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 ...

TDSecurities on Today’s Data

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 ...

Swap Spreads

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 ...

Long Bond Deteriorates (Finally)

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 ...

Repo Pain in 2 Year Note

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 ...