Archive for April, 2014
Monday, April 28th, 2014
Swap spreads closed mixed with 5s 1/2 basis point tighter and 2s and 30s unchanged. Dealers report hedge fund interest in receiving 5s against 2s and 10s with forward starts. There was also continued fast money interest in paying belly spreads.
Posted in Uncategorized | Comments Off on Swap Close
Monday, April 28th, 2014
Via CRT Capital:
Although still below the 2-week average, activity steadily increased throughout the day on Monday and cash ended at 88% of the 10-day moving-average. 5s once again managed to hold their position as the most active issue, taking a 32% marketshare, while 10s were a distance second at 24%. ...
Posted in Uncategorized | Comments Off on Level of Activity
Monday, April 28th, 2014
Maybe I should have stayed in Virginia. Corporate bond spreads are once again firm in light activity. One salesman noted that the only area of excitement was in bank and finance where the Bank America's calculating faux pas has caused its bonds to widen about five basis points. Its ...
Posted in Uncategorized | Comments Off on Corporates
Monday, April 28th, 2014
A nice research round up via Bloomberg:
RATES RESEARCH ROUNDUP: UST Yield, Positioning Views
2014-04-28 15:43:09.467 GMT
By Monika Grabek
April 28 (Bloomberg) -- Views on 10Y UST yields before
week’s critical economic data including NFP Friday, FOMC on
Wednesday.
* For link to roundup of views on quarterly auctions, click
here
* BofAML (MacNeil Curry)
* Although new 5Y ...
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Monday, April 28th, 2014
Mortgages are better on the day in very light volume. Thirty year coupons are 1 tick to 2 ticks better than Treasuries and 15 year paper is 1+ better. Origination volume is light, too. One dealer noted that research analysts were expecting lighter issuance over remainder of year. He also ...
Posted in Uncategorized | Comments Off on MBS
Monday, April 28th, 2014
Swap spreads are boring today. Two year spreads are 1/4 basis points wider. The 5s 10s and 30s are flat. One PM with whom I conversed thought (as did a market maker last week) that the resting position in the street is long spreads (paid). Spreads are tight optically, corporate ...
Posted in Uncategorized | Comments Off on Swaps
Monday, April 28th, 2014
Prices of Treasury coupon securities are registering some losses today as equity markets rebound and Mr Putin failed to violate the sovereignty of the Ukraine over the weekend. So traders are unwinding the flight to quality trade which developed on Friday. Client flows have been on the light side thus ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, April 28th, 2014
I am back after a weekend in Charlottesville Virginia in which I was mental light years away from the bond market. My daughter founded the Charlottesville Ballet seven years ago (their first performance was the weekend in August 2007 when the central banks first joined forces and provided liquidity to ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance Today
Friday, April 25th, 2014
I am travelling today and therefore blogging will be sparse. Looks like I will miss interesting day.
Posted in Uncategorized | 1 Comment »
Thursday, April 24th, 2014
Merrill Lynch research on the flow of money into longer term bond funds:
More inflows to duration. Inflows into high grade outside of short-term funds further accelerated last week (ending on April 23rd) to $1.27bn as interest rates remained relatively low. There was also less of a rotation out of loans and ...
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