Archive for June, 2014

Corporate Bonds

Monday, June 23rd, 2014

The corporate bond market is unchanged in very light trading also. The new issue calendar is reasonable for a quiet Monday with eight issuers by my count. It looks to be between $3billion and $ 4billion thus far. The highlight is infrequent issuer Martin Marietta which is offering a 3 ...

Ennui Enervates Bond Market

Monday, June 23rd, 2014

I have been away from acrossthecurve.com's sprawling corporate edifice on the south shore of Long Island for several hours but upon my return I sense desperation in the voices of the several traders and salesmen with whom I conversed. In unison they report extremely low volumes with one trader suggesting ...

Bloomberg Research Roundup

Monday, June 23rd, 2014

They quote some very very smart people!!   Via Bloomberg: UST MORNING CALL: ‘Autopilot’ Till Overbought Correction Unfolds 2014-06-23 12:16:45.86 GMT By Monika Grabek June 23 (Bloomberg) -- “On autopilot waiting to see how this overbought correction in Treasury prices unfolds,” RBS strategist Bill O’Donnell says in note. * “Good news for those of us who crave price ACTION ...

Corporate Bond Issuance Thus Far

Monday, June 23rd, 2014

Via the Good Folks at Bloomberg; Korea Gas Corporation B'Mark A1/A+  12 yr 144A Reg S final gujidance  CT10 + 95bps area (+/-2.5 bps) DTE Electric Co. 700m (ng) Aa3/A  2 part long 10 & 30 yr 3 mo par call on 10 yr prior 6 mo          on 30 yr ipt 10 ...

Hilsenrath Story

Monday, June 23rd, 2014

Hilsenrath intimates that if inflation should exceed its target that the FOMC might allow it to trade above target for some time before reacting. Via WSJ: HILSENRATH’S TAKE: FED COULD FACE TOUGHER INFLATION QUESTIONS IN DAYS AHEAD Here’s a question we in the press corps should ask Janet Yellen at her next press ...

Today’s Happenings

Monday, June 23rd, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Chicago Fed Nat Activity Index, May, est. 0.2 (prior -0.32) * 9:45am: Markit US Manufacturing PMI, June preliminary, est. 56.0 (prior 56.4) * 10:00am: Existing Home Sales, May, est. 4.74m (prior 4.65m) * Existing Home Sales, May, est. 1.9% (prior 1.3%) Central Banks * 2:00am: BoJ’s Kuroda ...

FX

Monday, June 23rd, 2014

Via Brown Brothers Harriman: The disappointing euro area flash PMI cut short the single currency's attempt to establish a foothold back above $1.36.  The pullback has not been deep, with the euro holding above the pre-weekend low seen near $1.3565.  Both France and Germany disappointed expectations, but the French report was ...

Tight Spreads

Monday, June 23rd, 2014

Via Bloomberg: * Standard & Poor’s Global Fixed Income Research marked IG spreads at a new low for 2014 and a new post-crisis low of +141 vs +142; +164, the wide for the year, was seen Feb 7 * Markit CDX.IG.22 5Y Index closed at 57 vs 56.3; 56.3, the 52-week low and the lowest ...

June 23 2014 Opening

Monday, June 23rd, 2014

Prices of Treasury coupon securities have registered mixed results across the curve today and the yield curve is a little flatter when marked against levels which prevailed in late New York trading on Friday. The yield on the 2 year note climbed to 46.8 from 45.4. The yield on the ...

Demographics Revisited

Sunday, June 22nd, 2014

I wrote several times today about demographics  (here and here) and the health of the economy. Via Twitter one fully paid up subscriber apprised me of this FRB San Francisco research note which concludes that equity market performance is closely tied to the age distribution of the population. As baby ...