Archive for June, 2014
Friday, June 27th, 2014
Via the good folks at Bloomberg:
IG CREDIT: Thursday’s Volume Lowest Since April, Below 10-DMA
2014-06-27 09:50:15.138 GMT
By Robert Elson
June 27 (Bloomberg) -- The final Trace count for secondary
trading was $11.5b, lowest since April 17, vs $16.1b Wednesday
and $13b the previous Thursday. 10-DMA at $12.9b; 10-DMA of only
Thursday sessions $14b.
* VZ 6.55% 2043 topped the most active list; two-way client
flows accounted for 90% of volume
* VZ 5.15% 2023 was next; client selling near twice buying,
together taking 61% of volume
* UNP 4.875% 2015 was 3rd; client flows taking 100% of volume
* STLNO 2.90% 2014 was 4th; client buying at 60%, trades
between dealers 40%
* SBUX 3.85% 2023 was 5th; client flows at 100% with just two
large tickets, one buy, one sell
* BofAML IG Master Index unchanged at +107; +106, its low for
2014 and the tightest spread since July 2007 was seen
Tuesday; +132 is the wide for the year
* Standard & Poor’s Global Fixed Income Research marked IG
spreads at +142 vs +141, its low for 2014 and a new post-
crisis low of +141; +164, the wide for the year, was seen
Feb 7
* Markit CDX.IG.22 5Y Index closed at 56.8 vs 56.1, a new 52-
week low and the lowest level since Oct 2007; 52-week high
of 97.6 was seen June 24
* IG issuance totaled $7b, led by MON 7-part deal; month’s IG
issuance at $128.25b
* Citi had a managerial role in all of yesterday’s deals
* IG issuance YTD near $787b
Posted in Uncategorized | Comments Off on Spread Trading Recap
Friday, June 27th, 2014
I did not have any flow data from dealers when I initially wrote. Dealers report heavy selling in under 2 year maturities by real money and central bank. I heard that in New York time yesterday,too. Real money in Asia was a small buyer in longer maturities while some of ...
Posted in Uncategorized | Comments Off on Opening Note Addendum
Friday, June 27th, 2014
Prices of Treasury coupon securities have posted modest gains in overseas trading when viewed against levels which prevailed in New York trading at 500PM. The yield on the 5 year note slipped to 1.636 from 1.649. The yield on the 10 year note edged lower to 2.518 from 2.529. The ...
Posted in Uncategorized | Comments Off on June 27 2014 Opening
Thursday, June 26th, 2014
One of the intents of Abenomics was to create inflation in Japan and pull that country from its multi year deflation. The CPI data release this evening showed the fasted increase in inflation in over thirty years but when one strips out the sales tax hike of April 1 it ...
Posted in Uncategorized | Comments Off on Core Inflation in Japan Stalls
Thursday, June 26th, 2014
Via Merrill Lynch:
High grade in demand. Last week (ending on June 26th) was the second in a row with $2bn+ inflows into high grade bond funds. These inflows have been driven by both short-term and longer-term funds. The flows for short-term funds turned positive in the last two weeks following ...
Posted in Uncategorized | Comments Off on Solid Flows into High Grade Bond Funds
Thursday, June 26th, 2014
Via the FT:
Wall Street banks create corporate bond trading platform
By Tracy Alloway and Michael Mackenzie in New YorkAuthor alerts
Banks including Goldman Sachs and JPMorgan Chase are creating a new trading platform for US corporate bonds as they seek to maintain their hold on the business of trading US companies’ debt ...
Posted in Uncategorized | Comments Off on Corporate Bond Trading Platform
Thursday, June 26th, 2014
The public apprehension over the advance of terrorist group ISIS has subsided but the web site Long War Journal notes that while the atmosphere is becalmed the group is still making advances. A post at that blog earlier today details the oil facilities and natural gas facility which it now ...
Posted in Uncategorized | Comments Off on Iraq
Thursday, June 26th, 2014
Via RBS Securities:
Our Treasury flows were real money buying of 10’s and selling of 5’s and 7’s while fast money was buying 7’s. In swaps, we saw fast selling FV spreads, real money paying 10yr rate, and fast money putting on 5’s-30’s steepeners. In TIPS, we had real money buying ...
Posted in Uncategorized | Comments Off on MBS and Other Flow Stuff
Thursday, June 26th, 2014
Via Richard Gilhooly at TDSecurities
Another day, another rally, another downward revision to GDP. The Q2 estimates are still pretty healthy but are quickly going the way of Q1 after the weather hit was baked in and who knows where the health spending component comes in after the biggest ever revision ...
Posted in Uncategorized | Comments Off on Market Commentary
Thursday, June 26th, 2014
Via CRT Capital
* Dealers were awarded 42.7% vs. 32% average of last four 7-year auctions.
* Indirects get 40.6% vs. 43% norm.
* Directs take 16.7% vs. 25% average.
* Bid/Cover was 2.44 vs. 2.63 average of last four.
* Dealer Hit-Ratio: Dealers take 25% of what they bid for vs. 18% norm.
* Indirect ...
Posted in Uncategorized | Comments Off on Weak Seven Year Note