Archive for May, 2014

Treasury Update: Some Sellers Emerge

Wednesday, May 28th, 2014

One dealer with whom I have contact just published a note which said that he is seeing real money sellers of the Long Bond at this 3.30 level. The same dealer notes heavy trading of off the runs in the broker screens which is indicative of selling, too.

Junk Ascendant

Wednesday, May 28th, 2014

This was out last evening but I just noticed it. Junk bond managers are fixed income rock stars with winning performances. This is going to end very ugly. Via the WSJ: Markets New Fund Stars Ride Junk Bonds to the Top Development Shows Demand for Returns Since 2008 Financial Crisis By Matt Wirz May 27, 2014 8:44 p.m. ...

Treasury Miscellany

Wednesday, May 28th, 2014

The 10 year note traded in early May 2013 at around 1.62 percent. it traded close to 3 percent in September 2013 and as high as 3.05 in early January 2014. We are at important Fibo retracement levels within the context of that range. The 2.50 percent level was a ...

Updated Corporate Bond List

Wednesday, May 28th, 2014

Via Bloomberg: Turkiye Halk Bankasi 500mm (ng) Baa2/BBB-(Fitch)    5 yr 144A Reg S guidance ms +330 area The Walt Disney Co B'Mark A2/A 3/4 part  3 yr fxd, 5 yr fxd and/or frn,30 yr ipt 3 yr frn 3ml +hi 20's 5 yr fxd +mid 40's frn 3ml equiv 30 yr fxd +low 90's Public Service Elec ...

GS on State of the Bond Business

Wednesday, May 28th, 2014

I wrote here and here yesterday on the parlous state of the fixed income business. Here are some comments by Goldman Sachs CEO Cohn on the topic. Goldman’s Cohn Says 10Y Yield Trading In Tightest Band in 35 Yrs 2014-05-28 12:55:39.500 GMT By Patricia Lui May 28 (Bloomberg) -- Goldman Sachs President Cohn says firm ...

Treasury Market Rally

Wednesday, May 28th, 2014

The Treasury market is rallying and trades at approximately the low yields attained earlier in the month. The 10 year note has traded below 2.47 briefly and sits just above that level currently. What is motivating the uptrade? The greatest motivator of all is job preservation and I think that the ...

Corporate Bonds Thus Far

Wednesday, May 28th, 2014

Via the good folks at Bloomberg: $1.5b(e)  Walt Disney Co (DIS) A2/A    C/DB $m    3Y  IPT +High-20s                                                        $m    5Y FRN  3ML +equiv  ...

Uptrade

Wednesday, May 28th, 2014

One trader reported that this latest thrust higher in price is a result of the Bund piercing its May 16 high of 146.80.

JPM Duration Survey

Wednesday, May 28th, 2014

Via the good folks at Bloomberg: RATES: The Fewest Neutrals Since 2010 Seen in Latest JPM Survey 2014-05-28 11:15:01.769 GMT By Robert Elson May 28 (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended May 27 vs week ended May 19. * Longs at 17 vs 10 * Neutrals drop to 48 vs 66 * Shorts ...

Overnight Flows

Wednesday, May 28th, 2014

Via CRT Capital: OVERNIGHT FLOWS: The market is bid led by 7s on the back of softer data out of Germany in terms of a gain in UNR and soft PPIs for Europe more generally.  Those were some of the key fundamental excuses but ahead of those we encountered an Asian ...