Some Miscellany
Thursday, April 3rd, 2014There will be some Fedspeak today with Lockhart speaking at 1230PM and Bullard at 400PM. The Treasury will announce a new round of supply today with 3s 10s and 30s scheduled for auction next week.
Archive for April, 2014
There will be some Fedspeak today with Lockhart speaking at 1230PM and Bullard at 400PM. The Treasury will announce a new round of supply today with 3s 10s and 30s scheduled for auction next week.
Mark Chandler on Europe and ECB Decision
Thursday, April 3rd, 2014Via Mark Chandler of Brown Brothers: The ECB meeting looms large. The newswire surveys are nearly unanimous. The ECB is not going to take fresh action to address one of a number of issues, including low and falling inflation, anemic money supply growth, contracting lending, and an elevated EONIA. It is ...
April 03 2014 Opening
Thursday, April 3rd, 2014Prices of Treasury coupon securities have barely budged in overnight trading from levels which prevailed at 300PM yesterday. The yield on the 10 year note currently (617AM in New York) is 2.80 versus the 2.799 I recorded yesterday afternoon. The yield on the Long Bond now is 3.646 versus 3.645. ...
Small Stimulus Steps in China
Wednesday, April 2nd, 2014China took some small steps to stabilize its economy. The government cut taxes for small businesses and will engage in some infrastructure projects. Here is the Bank of America Merrill Lynch take on the news: Beijing introduces fresh growth supportive measures. These measures should be welcome by markets. The State Council meeting ...
Yield Whores Part 2
Wednesday, April 2nd, 2014I just posted a WSJ story on the grab for yield on lower rated paper when I visited the FT and lo and behold they are running a very similar story about demand for junk paper. Via the FT: Credit bubble fears put central bankers on edge By Tracy Alloway, Michael Mackenzie and ...
Yield Whores
Wednesday, April 2nd, 2014I have written about the insatiable demand for corporate bonds and the never ending search for yield by participants in that fixed income sector. When I am discussing that market the conversation focuses on investment grade corporate bonds. The WSJ carries an article this evening about the yield grab in ...
Midweek and Midafternoon Miscellany
Wednesday, April 2nd, 2014The Treasury market doing its finest imitation of a moribund feline striking the pavement with a very small bounce off the lows. The 5s have recovered on spread (somewhat) versus 2s and 10s and that fly is 31.5 currently. I had marked it back around 1100AM at 33 so there ...
Corporate Bonds
Wednesday, April 2nd, 2014Corporate bonds are firm in all sectors. Industrials are better by a basis point and TMT, bank and finance and utilities and energy are better by 1 basis point to 2 basis points. Yesterday Citibank brought a new 5 year note and the early talk was mid 90s. It priced ...
Treasury Flows
Wednesday, April 2nd, 2014The Treasury market is making new lows. Traders have cited the ADP report (even though it was a tad weaker than consensus) and the strong auto sales data of yesterday. Those factors in concert reinforce the notion of a spring thaw. One other participant cited the ECB meeting as a ...
Swaps
Wednesday, April 2nd, 2014Swap spreads are unchanged this morning in very light activity. One market maker with whom I spoke thought that activity would remain light until Friday morning. He thinks that the street and hedge funds have paid spreads and consider that position a free option in a bear market. Tighter spreads ...