Archive for May, 2014
Friday, May 30th, 2014
Mortgages are unchanged to a tad better against swaps in the higher coupons but lagging in the lower coupons. So FNMA 4 1/2s are about a tick better than swaps while the FNMA 3s are lagging by about 3 ticks and 4 1/2s are lagging swaps by a plus. I ...
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Friday, May 30th, 2014
Prices of Treasury coupon securities are sagging this morning as the rush to lower yields has run its course for now. There are several reasons which participants have cited for the higher yields today. I would start by quoting myself from this morning (which is obnoxious and i apologize) but ...
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Friday, May 30th, 2014
Via CRT Capital:
OVERNIGHT FLOWS: Treasuries are pretty much unchanged from late closing levels though 3s and 5s are a bit weaker giving a slightly flatter curve. There was official selling in 3s out of Asia, light buying in 10s, and not too much on the month-end extension front. Some real ...
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Friday, May 30th, 2014
Via Mark Chandler of Brown Brothers Harriman: (One point worth noting is that Chandler notes in this post that there was no increase in Federal Reserve holdings of securities on behalf of foreign central banks in the data released yesterday.Many have speculated that those entities have driven the rally and ...
Posted in Uncategorized | Comments Off on FX
Friday, May 30th, 2014
Prices of Treasury coupon securities have registered small losses in overnight trading and sit well below the intra day highs attained in some giddy trading yesterday. The 10 year note currently rests around 2.47 percent which is well off the intraday low of 2.41 which it touched yesterday. The Long ...
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Friday, May 30th, 2014
Some headlines from comments made by Kansas City Fed President Esther George. She is a bit hawkish as she is concerned (as well she should be) that keeping rate too low for too long will encourage excessive and imprudent risk taking.
30-May-2014 10:10 - U.S. FED'S GEORGE: FED SHOULD RAISE RATES ...
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Thursday, May 29th, 2014
It is hard to make this stuff up. My previous post moments ago was an FT article detailing the use of leverage in the carry trade as investors struggle to earn greater returns. Those trades ended in a vale of tears as the economy spiraled into a near depression in ...
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Thursday, May 29th, 2014
This is a great article on the complacency gripping the credit markets. The FT details the carry trade and the use of leverage that have chosen to employ to garner greater returns. This type of activity eventually brought the global system to a supine position in 2008 and 2009 when ...
Posted in Uncategorized | Comments Off on Deja Vu All Over Again
Thursday, May 29th, 2014
Via RBS Securities:
Our Treasury flows were fast money buying of 10’s and real money selling of 7’s and 5’s. In swaps, we had bank receiving of 5yr rate, insurance receiving of 10yr rate, and fast money paying of 5’s-10’s-30’s and receiving of 10yr rate. In TIPS, we had fast money ...
Posted in Uncategorized | Comments Off on Some Customer Flow Stuff
Thursday, May 29th, 2014
Bank America Merrill Lynch reports heavy flows into fixed income bond funds with flows into those funds totaling $19 billion over the last four weeks. Equity based mutual funds suffered $ 7 billion of outflows in that same period.
Via Merrill Lynch Research:
More buying of duration. As interest rates continue to ...
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