Archive for June, 2014

Draghi Speaks

Saturday, June 21st, 2014

Via Bloomberg: By Martijn van der Starre June 21 (Bloomberg) -- ECB President Mario Draghi says recovery is spread unevenly across eurozone, De Telegraaf reports, citing an interview. Draghi also told the newspaper: * Unemployment still very high, forms risks for recovery * Recovery is in earlier phase than in U.S.,U.K., Japan * Economy is slowly recovering * Higher ...

PTER Principle

Saturday, June 21st, 2014

The Atlanta Fed research blog has an interesting post on the reasons for the depressed state of wages in the labor market. There is an ongoing debate about long term unemployment and short term unemployment and the contribution of each to slack and slow wage growth. The Atlanta Fed concludes ...

Transparency

Saturday, June 21st, 2014

SEC has a plan to make pricing information more transparent for the average investor. Via the WSJ: SEC Chairman Unveils Plan to Boost Transparency in Bond Markets Mary Jo White Pushes Plan for Pre-Trade Price Disclosure for Muni, Corporate Bonds By Scott Patterson connect Updated June 20, 2014 7:16 p.m. ET The top U.S. securities regulator ...

Friday Flow

Friday, June 20th, 2014

Via RBS Securities: Our Treasury flows were fast money buying of 30’s vs. 5’s, fast money selling 10’s, and central bank buying of 10’s. In TIPS, the desk saw better buying of 5yr breakevens. Treasury inter-dealer broker volume was 71% of the 10-day average. Mortgages: Volumes were light today in mortgages. Hedge ...

Long End

Friday, June 20th, 2014

One other trader told me that there were bond buyers at 3.50. At that level Long Ps were around 3.70 and that attracted end users. There is belly supply next week and two long end buybacks. So we are off to races.

Bond Bid

Friday, June 20th, 2014

The Long Bond has caught a bid and is back around 3.45 yield and is outperforming its curve cousins. One trader said (though he did not actually see ) that there was alot of end user real money buyers as the issue flirted with 3.50. If that be true then a ...

Dealers Long

Friday, June 20th, 2014

Via CRT Capital: - Treasury holdings (ex-bills) by Primary Dealers increased +$15.2 bn last week vs. +$1.9 bn in the prior week. This brings the outright level to +$39.8 bn; the highest since early December. Weekly increases were seen in every sector.  As of June 11, the dealer community was long ...

FX Color

Friday, June 20th, 2014

Via a fully paid up subscriber: {CA} USDCAD steals the show this morning with CPI and retail sales both better than expected this has taken us through 1.0800 barriers and we hit stops etc below there with some macro sellers down through 10770 but we've since found local RM demand for ...

Bear Steepening

Friday, June 20th, 2014

Via Richard Gilhooly of TD Securities: North American inflation has surprised to the upside this week, with the US May CPI data on Tuesday and now with Canada' CPI above the 2.0% target for the first time in over two years in May. The latest firming in energy prices and the ...

FX

Friday, June 20th, 2014

Via Brown Brothers Harriman: It was a busy week for currencies and rates as markets digest the developments surrounding the Fed, ECB, and BOE.  We note that currencies continue to loosely track moves in the rates markets.  Looking at the closing prices in 2-year sector, for example, the spread between US ...