Archive for April, 2014

Light Volumes Today

Wednesday, April 9th, 2014

Via CRT Capital Wednesday’s volumes were light across the board – taking the tone from the lackluster overnight session.  Overall on the day, cash traded at 72% of the 10-day moving-average after peaking at 90% of the norms mid-morning.  5s were the most active issue, taking a 32% marketshare, while 10s ...

Swap Spreads

Wednesday, April 9th, 2014

Two year swap spreads are 1/2 basis point wider today. The rest of the curve is unchanged to 1/4 basis point tighter. Post the FOMC fast money clients were unwinding long spread positions by receiving.

Post FOMC

Wednesday, April 9th, 2014

The minutes have sparked a dramatic shift in the configuration of the Treasury yield curve. Minutes before the release of the document the 5s 30s spread was 185. As I compose this electronic missive it is 192.5 basis points. Similarly, the 5s 10s spread has gapped from 100.8 to 104.8. ...

Hilsenrath on Minutes

Wednesday, April 9th, 2014

Hilsenrath article: Hilsenrath Analysis: Fed Worried About Misleading on Interest Rates at Policy Meeting By Jon Hilsenrath Federal Reserve officials worried about inflation and the signals they were sending about interest rates at their two day policy meeting March 18-19. Some officials argued they needed to send a stronger signal that they wanted to see inflation ...

Steeper Post Minutes

Wednesday, April 9th, 2014

5s 30s nearly 4 steeper at almost 189. At 152PM I clocked it at 185. This is street shooting taxpayers in big toe in advance of auction tomorrow.

Ten Year Auction Result

Wednesday, April 9th, 2014

Via CRT: *** The auction was soft with a 1.5 bp tail and non-dealer bidding at 59.9% vs. 62.6% norm *** * 10-year auction stops at 2.720% vs. 2.705% 1-pm bid WI. * Dealers were awarded 40.1% vs. 37% average of last four 10-year Reopenings. * Indirects get 44.7% vs. 45% norm. * Directs take ...

Non Market Musing

Wednesday, April 9th, 2014

This is non market related but is from a Financial Times piece on the "Cow of the Future". Apparently the largest producer of methane gas on the planet is the cow and scientists are taking steps to cut down on that onerous source of pollution. It caught my eye because ...

Dollar/Yen Chart and Comments

Wednesday, April 9th, 2014

Via Pierpont Securities: USD/JPY continues to be a  barometer of risk appetite (aversion) and is approaching some critical support in the 100.76 – 101.05 range. 100.76 is the low for 2014, reached on Feb 4 100.80 is the current 200-day MA, generally support for USD/JPY 101.05 is trend-line support over the last 14 months ...

Auction View

Wednesday, April 9th, 2014

I wrote my own 10 year auction piece earlier today. This is the note CRT Capital sent to clients several minutes ago on that topic. Via CRT Capital: • 10-year auctions have met relatively strong receptions lately with five of the last seven stopping-through for an average of 0.9 bp vs. two ...

Light Corporate Calendar Thus Far

Wednesday, April 9th, 2014

Mizuho Bank Ltd B'mark A1/A+ 4 part 3 yr fxd & frn, 5 & 10 yr ipt 3 yr fxd +70-75 frn 3ml equiv 5 yr fxd +95-100 10 yr fxd +120-125 Credit Agricole (London Brabch) B'Mark A2/A  2/3 part 5 yr fxd and/or frn, 10 yr ipt  5 yr fxd +100 area frn 3ml equiv 10 yr fxd ...