Archive for June, 2014
Wednesday, June 18th, 2014
Cyprus has made a Guinness world record return to the bond market with the sale today of a 5 year note which is motivated by the frenzied search for yield. I discussed the lunacy here and here yesterday.
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Wednesday, June 18th, 2014
China's Li Says Expects 7.5 Percent Growth Rate, No 'Strong Stimulus'
By REUTERSJUNE 18, 2014, 5:54 A.M. E.D.T.
LONDON, (Reuters) - China's economy will grow 7.5 percent, maintain medium to high growth in the long run and will not resort to 'strong stimulus', Premier Li Keqiang said on Wednesday.
Speaking during a visit ...
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Wednesday, June 18th, 2014
Via David Ader CRT Securities:
** While dated news and an old story, there is something here worth noting in the final paragraphs. The GPIF held 55% of its assets in local bonds on Dec 31 with 17% in domestic stocks. The goal is to get to 50% and 20%, respectively. ...
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Wednesday, June 18th, 2014
Via TDSecurities:
BoE Minutes Reveal Market Overshot on 2014 Tightening Risks
§ MPC vote remains unchanged at 9-0.
§ 2014 rate hike is an upside risk, not BoE base case. The MPC sees rising upside risks to H2 growth and found it “somewhat surprising” in that context that the market had such a low ...
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Wednesday, June 18th, 2014
Prices of Treasury coupon securities are imitating the actions of a moribund feline dropped from on high as bond prices have experienced a slight bounce in overnight trading. The belly of the curve is the winner in this exercise. The yield on the 5 year note has declined to 1.732 ...
Posted in Uncategorized | Comments Off on June 18 2014 Opening
Wednesday, June 18th, 2014
Via a fully paid up subscriber:
BOE: June MPC Minutes: Policy Decision Becoming More Balanced
- MPC: Voted 9-0 For Unchanged Policy At June Meet
- MPC: Risk Slack Could Be Absorbed Quicker Than Expected
- MPC: Market Rate Expectations "Somewhat Surprising"
- MPC: Necessary To See More Slack Absorbed Before Rate Hike
- MPC: Case ...
Posted in Uncategorized | Comments Off on Bank of England Minutes
Wednesday, June 18th, 2014
Jon Hilsenrath and Victoria McGrane at the Wall Street Journal have created a nice summary of the problems which the FOMC confronts in analyzing the plight of the long term unemployed. One school of thought holds that this cohort exerts downward pressure on wages and derives some benefit from zero ...
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Tuesday, June 17th, 2014
I wrote a piece earlier today about the Target bond deal and the higher yields which it tool to entice buyers. My usual corporate bond source thought the deal was a potential canary in the coal mine for corporate spreads. The WSJ story appended to this post suggests that this ...
Posted in Uncategorized | Comments Off on Target Pricing
Tuesday, June 17th, 2014
I just found this FT story after posting this. According to the FT junk bond yields are at all time lows.
Via the FT:
Markets
Junk bond yields at all-time low
The multi-year rally in junk bonds has just reached a new milestone: average yields on junk-rated securities - those with a higher probability ...
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Tuesday, June 17th, 2014
This is beautiful. Ecuador sold $2 billion 10 year notes today at 7.95 percent. The country had planned to sell just $700 million but demand was huge and the rate was lower than originally anticipated. The twisted part of this is that these buyers (who should have their license to ...
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