Archive for June, 2014

FX

Thursday, June 26th, 2014

Via Mark Chandler at Brown Brothers Harriman: The BOE has taken some action to help cool off the UK housing market, as widely expected.  The so-called macro-prudential measures from the BOE’s Financial Policy Committee include limiting a bank’s the share of mortgages at 4.5 times income to no more than 15% ...

Corporate Bond market Recap

Thursday, June 26th, 2014

Via Bloomberg: IG CREDIT: Highest Volume of the Month; Ziraat Set to Price 2014-06-26 10:21:38.142 GMT By Robert Elson June 26 (Bloomberg) -- The final Trace count for secondary trading was $16.1b vs $15.6b Tuesday and $15b the previous Wednesday. 10-DMA at $12.9b; 10-DMA of only Wednesday sessions $15.1b. * PEMEX 3.50% 2023 topped the most active list; ...

June 26 2014 Opening

Thursday, June 26th, 2014

Prices of Treasury coupon securities have registered very small mixed changes in overseas trading. As I noted here there was very little economic data to provide a focus. The UK has acted to restrain the risky mortgage  market but that to has had little impact on trading so I guess ...

UK Limits Risky Mortgage Lending

Thursday, June 26th, 2014

The UK has taken steps to limit risky mortgage loans by banks and has an imposed a limitation on loans banks make which exceed a certain ratio of the loan to the borrowers income. Via the WSJ: U.K. News Bank of England Tightens Mortgage- Lending Rules New Rules to Prevent too Many Homebuyers Taking ...

Not Much Happening

Thursday, June 26th, 2014

I am sitting here at my work station and is my custom I am sifting through the news and my email to see what happened overnight and what the meaningful news is from the overnight session. I found this excerpt from a note from a futures broker interesting. It was ...

Japanese Investors Search Overseas for Yield

Wednesday, June 25th, 2014

By Isaac Aquino June 26 (Bloomberg) -- Japanese investors were net buyers of foreign bonds during the week ended June 20 according to figures released by the Ministry of Finance in Tokyo. * Bought 1486.5b yen ($14.6b) in overseas bonds and notes * Third consecutive week of net bond purchases * Largest net bond purchase since week ending Aug. 9, 2013 * Foreign investors sold 475.2b yen in Japanese bonds * Largest net bond sale since week ending Jan. 10, 2014 * Bought 295.6b yen in Japanese stocks

Bonos de basura

Wednesday, June 25th, 2014

Puerto Rico is set to restructure some debt which will cause losses for once happy holders. And I hope I got the Spanish correct in the title. Via the WSJ: Puerto Rico Moves to Restructure Debt Proposal Could Lead to Losses for Investors Holding Bonds from Power, Transportation Agencies By Aaron Kuriloff Updated June 25, 2014 ...

Flow Stuff

Wednesday, June 25th, 2014

Via RBS Securities Our Treasury flows were real money buying of 10’s and 30’s and selling of 7’s while fast money was selling 5’s. In swaps, we saw fast and real money selling invoice spreads while we saw receiving in 2yr through 5yr rate by a mixture of accounts. In TIPS, ...

Five year Auction Result

Wednesday, June 25th, 2014

Via CRT Capital *** A lackluster takedown with non-dealer bidding 61.8% vs. 65% norm and a 0.1 bp tail. *** * 5-year auction stops at 1.670% vs. a 1.669% 1 pm bid WI. * Dealers were awarded 38.2% vs. 35% average of last four 5-year auctions. * Indirects get 52.5% vs. 49% norm. * Directs ...

Geopolitcal Treatise (And Interesting)

Wednesday, June 25th, 2014

Via FT June 25, 2014 3:47 pm Isis should not be America’s foreign policy priority By Francis FukuyamaAuthor alerts Allies the US is sworn to defend are threatened by China and Russia, writes Francis Fukuyama For some, it will always be 1939. We are forever telling ourselves how, in the 1930s, the US and Britain ...