Archive for April, 2014

Corporate Bonds Thus Far

Tuesday, April 29th, 2014

Today's new issues in corporate bond land with a big bite of the Apple included: Via Bloomberg: Abu Dhabi National Energy 750mm A3/A-    10 yr 144A Reg S final guidance ms+120 +/- 5 bps Minera Metalúrgica del Boleo 340mm A1/A+  5 yr guidance +125 +/- 2.5 bps Apple Inc B'Mark Aa1/AA+    7 part ipt 3 ...

JPM Duration Survey

Tuesday, April 29th, 2014

Via the Good Folks at Bloomberg: RATES: Clients ‘Slightly Less Short’, Says Latest JPM Survey 2014-04-29 11:11:00.453 GMT By Robert Elson April 29 (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended April 28 vs weekend ended April 21. * Longs 12 vs 11 * Neutrals 57 vs 55 * Shorts 31 vs 34 * Net longs ...

Overnight Flows

Tuesday, April 29th, 2014

Via CRT Capital: OVERNIGHT FLOWS: Treasuries were slightly lower overnight on a variety of data, but with little to warrant a selloff.  Overnight volumes were light with cash trading at 78% of the 10-day moving-average, while TY came in at 91% of norms.  5s were by far the most active issue, ...

FX

Tuesday, April 29th, 2014

Mark Chandler of Brown Brothers on FX: Perhaps the most important event was Draghi's comments yesterday to the German parliament.  He was quoted by Bloomberg indicating that although QE was under consideration it was not imminent and relatively unlikely.  This matches our understanding.  The ECB's June meeting is a more likely ...

Treasury Refunding

Tuesday, April 29th, 2014

On Wednesday the Treasury will announce details of the quarterly refunding package which will include a 3 year note as well as new 10s and 30s. Auctions should be next Tuesday , Wednesday and Thursday of next week.Here is the take of TDSecurities on the supply dynamic. Via Gennadiy Coldberg of ...

April 29 2014 Opening

Tuesday, April 29th, 2014

Prices of Treasury coupon securities sagged in overseas trading when compared against levels which prevailed in New York around 400PM yesterday. The yield curve performed a bearish steepening as 5s 10s,5s 30s and 10s 30s are all steeper. There were a variety of economic releases and in the aggregate they ...

Merrill Lynch on High Grade Credit: Get Neutral

Monday, April 28th, 2014

Merrill Lynch research had advised clients to overweight high grade securities in portfolios. This evening the firm retracted that recommendation and advised clients to hold a neutral weighting of that asset class. They reason  that at current spread levels one is not getting paid to take that risk. Wise advice! Via ...

Oh Canada

Monday, April 28th, 2014

The Italians have an expression "cent anni" which literally means for a hundred years but in colloquial usage it has come to mean good luck. Well the government of Canada sold some 50 year bonds today at a yield one basis point rich to its outstanding bond maturing in 2045. ...

Overnight Data Preview

Monday, April 28th, 2014

Overnight Data Preview Via Robert Sinche of Pierpont Securities: S. KOREA: March data for the Current Account; the CA surplus has been weakening steadily over recent months, likely a reflection of both a stronger KRW, especially relative to the JPY and, more recently, the CNY, and weaker growth in China. CA ...

Some Flow Information

Monday, April 28th, 2014

Via RBS Securities: Our Treasury flows were central bank buying of 10’s, real money selling of 5’s, real money buying of the long end, and real money buying of the front end. In swaps, we fast money putting on a 5yr forward 2’s-5’s steepener and another hedge fund receiving 5’s-10’s-30’s. Our ...