Archive for April, 2014

MBS

Thursday, April 10th, 2014

Mortgages are 2 ticks to 3 ticks tighter in 3s through 4s in early trading this morning. Higher coupons are unchanged. Fifteen year paper is 2 to 2+ tighter. There is some money manager selling but lightly so. Origination is light and Federal Reserve buying swamps the street and ergo ...

Corporate Bond List This Far

Thursday, April 10th, 2014

Via Bloomberg : State Bank of India B'Mark Baa3/BBB- 2 part 5 & 10 yr  144A Reg S final guidance  5 yr  +210 area +/- 5 bps 10 yr  +230 area +/- 5 bps Turkiye Garanti Bankasi B'Mark Baa2/BBB  5 yr    144A Reg S ipt  +330 area SUAM Finance 500mm (ng) Baa2/BBB+  10 yr 144A ...

Pierpont Securites on Jobless Claims

Thursday, April 10th, 2014

Via Stephen Stanley of Pierpont Securities: Initial jobless claims plunged by 32,000 in the week ended April 5 to an even 300,000, the lowest reading since 2007.  Before we celebrate, however, I would point out that there is frequently some volatility around the turn of a calendar quarter, and particularly at ...

Some Excellent Commentary

Thursday, April 10th, 2014

I always write this disclaimer when I post the musings of Richard Gilhooly at TDSecurities. He is a friend and a former colleague and I think what he regularly writes is always insightful and cogent. Here is his morning musing on the FOMC, the market's reaction and street positions. Via Richard ...

Mark Chandler on FX market

Thursday, April 10th, 2014

Via mar Chandler of Brown Brothers Harriman:   The US dollar suffered losses yesterday in response to confirmation that Fed policy will remain extremely accommodative for more than another year.  Those losses were initially extended in Asia and even further in European.  The Australian dollar and yen are competing for the leadership ...

Bubbles Everywhere:Greek Bond Sale

Thursday, April 10th, 2014

Bonds are trading like dot com stocks in 1999. Attached is an FT recap of the sale of 5 year bonds by Greece. Via the FT: Greece €3bn bond sale snapped up By Robin Wigglesworth and Elaine Moore in London and Kerin Hope in Athens Greece has raised €3bn in a five-year bond deal ...

April 10 2014 Opening

Thursday, April 10th, 2014

Prices of Treasury coupon securities have registered additional gains as the rally which began with release of the FOMC minutes continued in Asia and Europe. There was robust buying in both venues. I have heard already of trading account buyers of 5s and 10s and as well as real money ...

Steeper Curve in Asia

Wednesday, April 9th, 2014

For those of you keeping score at home (and I know you are) the 5s 30s spread is at 195.5. Moments before release of minutes the spread was 185. I think even more significantly at 195 it is trading a tad wider than where I marked it at 400PM on ...

Hilsenrath on Fed Angst Over Inflation (New Article)

Wednesday, April 9th, 2014

Via WSJ U.S. NEWS Fed Officials Shows Growing Worry About Low Inflation Central Bankers Around World Have Expressed Angst About Weakness in Global Economy   By JON HILSENRATH Updated April 9, 2014 7:48 p.m. ET   Federal Reserve officials are growing concerned the U.S. inflation rate won't budge from low levels, the latest sign of angst among central bankers ...

Pimco Flagship reduces Treasury holdings

Wednesday, April 9th, 2014

Pimco's flagship fund reduced its holdings of Treasuries and mortgages in February to 41 percent from 43 percent in the prior month. The fund also reduced its holdings of mortgages to 21 percent from 29 percent. The fund experienced withdrawals for the 11th consecutive month. Via WSJ: Markets Pimco's Bill Gross Cut U.S. ...