Archive for June, 2014

Overnight Data Preview

Tuesday, June 17th, 2014

Via Robert Sinche at Pierpont Securities: AUSTRALIA: Westpac and Conference Board both release Leading Indexes…the Westpac version flat/down for last 4 months. CHINA: May Property Prices, which have begun to slide modestly, and MNI June Business Indicator both released. MNI Indicator bounced to a 5-month high of 53.7 in May. JAPAN: Trade Balance ...

Some Flow Stuff

Tuesday, June 17th, 2014

Via RBS Securities Our Treasury flows were fast money buying of 10’s, bank selling of 5’s, bank buying of 10’s, real money buying of 30’s, and real money selling of 10’s. In swaps, we had better receiving of 2yr rate through 5yr rate while there was better paying in 10yr and ...

Swap Spreads

Tuesday, June 17th, 2014

Swap spreads closed the day about 3/4 basis points tighter across the curve as selling of Treasuries pushed spreads tighter. Hedge funds were better payers of front end rates and on spreads fast money received against futures contracts on stop out trades.

Corporate Bonds: Watch the Target

Tuesday, June 17th, 2014

Spreads are unchanged to leaking a tad wider but my source he avers that there has not been enough trading today to make a significant judgment. There is a reasonable amount of issuance but it is mostly third tier names. There is one interesting development though and that is the ...

Treasury market Update

Tuesday, June 17th, 2014

Prices of Treasury coupon securities are plummeting in response to the stronger than anticipated CPI data this morning. The data resonates as it was less than a week ago that bank of England head Carney raised the prospect of tightening there sooner rather than later. I guess market participants do ...

Three Year Note

Tuesday, June 17th, 2014

If the 3 year note closes here it will be highest close on issue since 2011.

Flows

Tuesday, June 17th, 2014

Post the CPI print real money is buying 3 year notes and fast money is covering curve shorts in 5s.

Stagflation

Tuesday, June 17th, 2014

Via CRT Capital ** MAY CONSUMER PRICES RISE 0.4%; CORE RATE UP 0.3% -- CORE CONSUMER PRICES INCREASED 2% FROM MAY 2013 -- CONSUMER PRICES INCREASED 2.1% IN MAY FROM YEAR EARLIER -- services gain 0.4%, up on rent and medical.  Still. -- FOOD PRICES IN U.S. ROSE 0.5%, MOST IN ALMOST THREE YEARS -- ENERGY ...

Flatter

Tuesday, June 17th, 2014

it appears that post CPI the 5s 30s is revisiting 168 which it touched Sunday evening. I think that is cycle low. And eyeballing 2s 5s 10s that appears at a cycle wide of 36.

FX

Tuesday, June 17th, 2014

Some FX thoughts from a fully paid up subscriber: {JN} USDJPY struggles to hold above 102.00 but the truth is this one is going no where. We have seen Japanese sellers in Asia overnight and also saw RM supply above 102.00 and in EURJPY we've been a better seller north of ...