Archive for July, 2014
Tuesday, July 15th, 2014
Corporate bond spreads are open better today and are 1 basis points to 2 basis points tighter. I noted in a previous post Ms Yellen's comments in her testimony in which she expressed concerns about lower rated credits and said the Fed is monitoring that sector. That comment has not ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, July 15th, 2014
Traders report very little activity as most conclude as I have that Ms Yellen has imparted very little new information. I had marked 5s 30s at 169.7 at 955AM and it is now 170.6. I will guess that is noise.
The equity market has sold off from levels which prevailed before ...
Posted in Uncategorized | Comments Off on Curvology and Equity Sell Off
Tuesday, July 15th, 2014
I did post a paragraph and entitled the excerpt "Cooing Dove". In retrospect that is a bit of hyperbole and excess permitted unto me as the blog's author. I have just finished reading the text and there is no new information here. The Fed is winding down the taper and ...
Posted in Uncategorized | Comments Off on Yellen Text
Tuesday, July 15th, 2014
Just reading this and looking for the money quotes. Just stumbled on this:
Although the economy continues to improve, the recovery is not yet complete. Even with the recent declines, the unemployment rate remains above Federal Open Market Committee (FOMC) participants' estimates of its longer-run normal level. Labor force participation appears ...
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Tuesday, July 15th, 2014
The spread between the reverse repo rate and interest on excess reserves has become a hot topic for discussion since the FOMC included its discussion of the topic in the recently released minutes of its last meeting. In this article the author suggests that a too wide spread would "undermine ...
Posted in Uncategorized | 1 Comment »
Tuesday, July 15th, 2014
Via Chris Low at FTN Financial:
Retail sales rose 0.2% in June, less than the 0.6% consensus, but April and May were both revised higher; April from 0.5% to 0.6% and May from 0.3% to 0.5%. Ex-autos and ex-autos & gas sales rose 0.4%, both less than the 0.5% consensus, but ...
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Tuesday, July 15th, 2014
This is an excellent article at Nate Silver's 538 blog on corporation's returning money to shareholders. There has been a surge in dividend payouts and a surge in share buybacks by companies. To me (and I think the author misses the point) the salient point is that those who are ...
Posted in Uncategorized | 3 Comments »
Tuesday, July 15th, 2014
One of my usually impeccable sources had written that the text of the Yellen testimony would be available at 830AM New York time. he just retracted that and release is standard 1000AM New York time.
he apologizes as do I for sowing the seeds of confusion.
As an aside this is an ...
Posted in Uncategorized | Comments Off on Yellen Text Timing
Tuesday, July 15th, 2014
All Clients Long Neutral Short
July 14 11 49 40
July 07 13 49 38
June 30 11 51 38
Active Clients
July 14 8 38 54
July 07 15 38 46
June 30 8 46 46
In the all clients survey, the percent of longs decreased by 2, the percent of neutrals remained unchanged, and the percent ...
Posted in Uncategorized | Comments Off on JPM Weekly Duration Survey
Tuesday, July 15th, 2014
Via CRT Capital
OVERNIGHT FLOWS: Treasuries were modestly better overnight following the disappointing German ZEW release and renewed Espirito Santo concerns. Overnight volumes were light with cash trading at 78% of the 10-day moving-average, while TY came in at 86% of norms. 5s were the most active issue, taking a 34% ...
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