Archive for June, 2014

Last Time on TIPS

Thursday, June 19th, 2014

I just found this one on TIPS from Richard Gilhooly at TD Securities. Sorry for the flood of TIPS stuff. Via TD Securities: Treasury will auction $7bn 30yr TIPs at 1pm, in the first re-opening of the benchmark February 1.375% 2044 issue. The auction came at 1.495% real yield in February and ...

Tips Auction Revisited

Thursday, June 19th, 2014

One trader noted that the 5 year breakeven has moved 10 basis points in the last four trading sessions and has benefited from the Yellen comment that the recent uptick in inflation is noise as well as from the stronger inflation data. The last two TIPS auctions have been blowouts ...

Corporate Issuance Thus Far

Thursday, June 19th, 2014

Via the good folks at Bloomberg The Williams Co Inc. 1.9 bln Baa3/BB+ 2 part  10 & 30 yr 3 mo par call on 10 yr prior 6 mo          on 30 yr ipt 10 yr +220 area 30 yr +265 area Societe General B'Mark Ba3/BB (Fitch)  Perp nc 5.5 yr  sub debt ...

Iraq

Thursday, June 19th, 2014

There were conflicting reports yesterday that the ISIS group had captured a large refinery on the outskirts of Baghdad. The website longwarjournal.org reports the takeover as fact. In addition they offer this as an overview on the overall conflict: "The ISIS' speedy southward advance from Mosul all the way to the ...

TIPS

Thursday, June 19th, 2014

The Treasury will conduct a 30 year TIPS auction today and the consensus is that it will go very well as the perception is that the FOMC has a very casual attitude about inflation risks. One trader notes the outperformance of 5 year TIPS since the FOMC and the relative ...

Swaps

Thursday, June 19th, 2014

Swap spreads are leaking wider this morning with 2s unchanged and 5s 1/4 wider. Tens are 1/2 wider and 30s are 1/4 wider. One trader described the market as very quiet amidst light client flows.

Corporate Bonds

Thursday, June 19th, 2014

The corporate bond market is quite firm this morning as Ms Yellen gave the green light to those who want to strap on risk. My corporate bond source reports that the IG 22 opened yesterday morning at 60 and edged lower throughout the day . It trades at 56 this ...

Stuff to Watch Today

Thursday, June 19th, 2014

Via Bloomberg: Economic Data * 8:30am: Initial Jobless Claims, June 14, est. 313k (prior 317k) * Continuing Claims, June 7, est. 2.6m (prior 2.614m) * 9:45am: Bloomberg Economic Expectations, June (prior 42.5) * Bloomberg Consumer Comfort, June 15 (prior 35.5) * 10:00am: Philadelphia Fed Business Outlook, June., est. 14 (prior 15.4) * 10:00am: Leading Index, May, est. 0.6% (prior ...

Dovish Norges Bank

Thursday, June 19th, 2014

Via TD Securities: Norges Bank Flip Flops Back to the Dovish Camp The Norges Bank surprised today by coming in much more dovish than expected, and reintroducing the chance of further easing for the first time in a year. Analysts were already widely expecting the Norges Bank to pull down its 2015-2017 ...

FX

Thursday, June 19th, 2014

Via Brown Brothers Harriman: The main take away from the FOMC meeting is that the Federal Reserve is not the Bank of England. Hawkish comments by top BOE officials--not just Governor Carney--are encouraging investors to bring forward the beginning of a normalization of monetary policy and a tightening cycle, no matter ...