Archive for April, 2014

Euro vol: Very Low

Thursday, April 24th, 2014

Kit Juckes is an FX analyst with SocGen and he points out in the opening of his morning note this morning that three month vol on the Euro (currency) versus the mighty greenback is as low as at is has been since August 2007. That was just at the point ...

Bank America On Retail Spending

Thursday, April 24th, 2014

Bank America Merrill Lynch has an internal model which follows spending on debit cards and credit cards owned by its customers. Last week because of the Easter holiday spending was up over 10 percent against the same (non Easter) week in the prior year. The analysts at Merrill did what ...

Five Year Note Result

Wednesday, April 23rd, 2014

Via CRT Capital: *** A mixed takedown with non-dealer bidding 63.5% vs. 56.7% norm, despite the 0.8 bp tail. *** * 5-year auction stops at 1.732% vs. a 1.724% 1 pm bid WI. * Dealers were awarded 36.5% vs. 43% average of last four 5-year auctions. * Indirects get 44.9% vs. 43% norm. * Directs ...

Auction (5 Year ) Preview

Wednesday, April 23rd, 2014

Via CRT Capital: • 5s have recently seen weak receptions with all but two of the last ten auctions tailing for an average of 0.72 bp.  A longer history shows 5s tail 67% of the time.  That said, the two recent stop-throughs were in February and March at 0.6 bp and ...

Payors

Wednesday, April 23rd, 2014

London based source is reporting very heavy paying in 4 year and 5 year part of swap curve which has helped push Bunds lower.

Critical Levels on Belly vs Bond

Wednesday, April 23rd, 2014

Via Bloomberg some critical spread levels versus the Bond: * Curve spreads anchored by 30Y narrowed to lowest closing levels in months, including * 5/30 to 175.8bps, lowest since Sept. 2009 * 7/30 to 119.3bps, lowest since Oct. 2009 * 10/30 to 77.7bps, lowest since Oct. 2009

Overnight Flows

Wednesday, April 23rd, 2014

Courtesy of CRT Capital OVERNIGHT FLOWS:  Treasuries were little changed overnight despite the variety of firmer data out of Europe.  Overnight volumes were near the norms with cash trading at 94% of the 10-day moving-average, while TY came in at 105% of norms. 5s were the most active issue, taking a ...

FX

Wednesday, April 23rd, 2014

Via Mark Chandler of Brown Brothers: There are two important drivers in the foreign exchange market today.   First, the euro area flash PMI was stronger than expected.  This helped lift the euro about half a cent and further cement its recovery from the dip to seven day lows yesterday.  We ...

Corporate Bonds Thus Far

Wednesday, April 23rd, 2014

Via Bloomberg: $b  CNOOC Nexen Finance (CNOOC) Aa3/AA- $    3Y  +105area $  10Y  +185area $  30Y  +170area BoC/C/CS/DB/GS/JPM/MS/UBS $b  Morgan Stanley (MS) Baa2/A-      MS 10Y  IPT +135area $tbd  Woori Bank (WOORIB) Baa3/na/na 144a/Reg-S Tier 2 sub 10Y  +212.5 area BAML/BNP/CrAg/HSBC/JPM/Nom #$1b  KfW (KFW) Aaa/AAA    HSBC/MS Global 1.5Y FRN  1ML +1 $b  Inter-American Development Bank (IADB) Aaa/AAA Global  3Y  IPT  MS ...

April 23 2014 Opening

Wednesday, April 23rd, 2014

Prices of Treasury coupons have registered very small gains in overnight trading in a session in which dealers failed to lament the lack activity as they have over the last few  sessions. The session was heavily laden with economic data and I suppose that gave investors and traders a focus. ...