Archive for April, 2014

Nasdaq Drag

Monday, April 14th, 2014

The Nasdaq has once again broken down and the early equity euphoria has proved itself to be ephemeral. One of the blogs at the WSJ published a piece prior to the open this morning which states that the problem with the Nasdaq. The company has just completed a 2 for ...

Monday Volume

Monday, April 14th, 2014

It is a very slow day in Treasury land with volumes at 74 percent of the ten day moving average.   Via CRT Securities: Monday’s volume profile started off with a relatively soft tone overnight as cash traded at 74% of the 10-day moving-average with 10s as the most active issue and while ...

Treasury Market

Monday, April 14th, 2014

The Treasury market is rather comatose today. There has been a small bounce in the absolute level of the Long Bond from the cheapest levels of the day. Two participants with whom I spoke reported pension fund buyers in the Long End . Regarding   the  generalized weakness in the market ...

MBS

Monday, April 14th, 2014

Mortgages are , on balance, + 1/2 to +3/4 versus Treasuries. Volumes are light. There seems to be some demand for 5s and 5 1/2 s and one salesman noted they were slightly outperforming their lower coupon brethren.

Corporate Bonds

Monday, April 14th, 2014

In the words of one corporate bond salesman spreads are violently unchanged this morning. He said the market had opened unchanged and sentiment was neutral and nothing has changed since the opening. In new issue land Wells Fargo is offering a new 5 year talk. Initial price talk is +65. My ...

Monday Morning Miscellany

Monday, April 14th, 2014

The Treasury curve is flatter than where  it was when I recorded levels at 506AM. The 5s 10s spread has narrowed to 103.8 from 105.3. The 5s 30s spread has moved to 188.5 from 190.3 and 10s 30s is 84.7 versus 85 before first light. The 5 year has taken ...

FTN on Retail Sales

Monday, April 14th, 2014

Via FTN Financial: Retail sales rose 1.1% in March from an upwardly revised 0.7% in February (previously 0.3%), the biggest increase since September 2012.  January sales were revised down, from -0.6% to -0.7%.  Retail sales ex-auto increased 0.7% in March and sales ex-auto and gas were up 1.0%. A 16.3 million annualized ...

Corporate Bonds Thus Far

Monday, April 14th, 2014

Via Bloomberg: KT Corp. B'Mark Baa1/A-  2 part  3 & 5 yr 144A Reg S guidance 3 yr +120 area 5 yr +130 area Wells Fargo & Co TBD A2/A+    5 yr sr hold co ipt +65 area Wells Fargo & Co TBD Baa3/BBB+  perp nc 10 yr $1000 par fxd/frn ipt 6.125% area Kimco Realty Corp ...

Overnight Volumes

Monday, April 14th, 2014

Via CRT Capital: OVERNIGHT FLOWS:  Treasuries were relatively stable during the overnight session despite the continued saber-rattling over the Ukraine and the further weakness in global equities.  Overnight volumes were light by recent standards, but solid for a Monday.   Cash traded at 74% of the 10-day moving-average, while TY came in ...

Mark Chandler on FX

Monday, April 14th, 2014

Via Mark Chandler of Brown Brothers: As the yield on 10-year US Treasuries recorded their biggest decline in a month and US 30-year yields fell to their lowest level since last July, investors learned that weekly initial jobless claims made new cyclical lows. Subdued price prices and inflation expectations (e.g., 5-year/5-year ...