Archive for July, 2014
Thursday, July 10th, 2014
In forty eight minutes the Jack Lew and his minions will offer the world $13 billion Long Bonds. I think that this is likely to be a sloppy affair for several reasons. I think that end user investors were the big buyers following the employment data last Friday and their ...
Posted in Uncategorized | Comments Off on Thiry Year Bond Auction
Thursday, July 10th, 2014
Corporate bond spreads are wider amidst very light activity but have improved some what as the equity market has trimmed its losses. One participant in that market noted that industrial and energy and TMT opened a basis point cheaper on the offered side and about 3 basis points cheaper on ...
Posted in Uncategorized | Comments Off on Corporate Bond Spreads
Thursday, July 10th, 2014
Swap spreads are 2 basis points wider in 2s and 5s and 1 basis point wider in 10s while 30 year spreads are 1/2 wider. One trader noted that the FOMC minutes released yesterday have moved the market. The minutes suggested that when the FOMC eventually raises rates that it ...
Posted in Uncategorized | Comments Off on Swap Spreads
Thursday, July 10th, 2014
Mortgages are lagging Treasuries by about 4 ticks in30 year paper and 3 ticks in 15 year paper. Origination supply was heavy yesterday and dealers await the Fed purchase later today which will clean up some of that supply pressure.
Posted in Uncategorized | Comments Off on MBS
Thursday, July 10th, 2014
Via Bloomberg:
By Lisa Loray
July 10 (Bloomberg) -- No IG deals are expected to price
today, the first non-Friday full session zero issuance day since
January 29.
* $21.1b has priced this week; July volume $27.8b; YTD volume
$829.4b
* Corporates have been quiet this week due in large part to
earnings blackouts; 2 autos, GM and ...
Posted in Uncategorized | Comments Off on Quiescent New Issue Market
Thursday, July 10th, 2014
Via Bloomberg:
IG Morning Brief 07.10.14
{FIFW NSN N8HV486TTDS1 <GO>}
+------------------------------------------------------------------------------+
IG CREDIT: $7.9b Priced, Week Tops $20b, Month Approaching $30b
2014-07-10 11:40:56.168 GMT
By Lisa Loray
July 10 (Bloomberg) -- $7.9b priced from seven issuers
yesterday, bringing the week to more than $20b for the 21st time
this year. Monthly volume to $27.8b and yearly volume $829.4b.
* Corporates ...
Posted in Uncategorized | Comments Off on Recap yesterday’s Spread Market Trading
Thursday, July 10th, 2014
I have noted the widening of Spain versus US in the 10 year sector over the last several days. Here is an excerpt from David Ader's morning note to clients of CRT Capital on peripheral movement over the last month:
Via David Ader of CRT Capital:
For further context though little insight, ...
Posted in Uncategorized | Comments Off on Peripheral Spreads
Thursday, July 10th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Initial Jobless Claims, July 5 est. 315k (prior
315k)
* Continuing Claims, June 28 est. 2.565m (prior 2.579m)
* 8:45am: Bloomberg July U.S. Economic Survey
* 9:45am: Bloomberg Consumer Comfort, July 6 (prior 36.4)
* 10:00am: Wholesale Inventories m/m, May, est. 0.6% (prior
1.1%)
* Wholesale Trade Sales m/m, May (prior 1.3%)
Central Banks
* 7:00am: Bank of England seen maintaining 0.5% bank rate
* 1:15pm: Fed’s George speaks in Shawnee, Okla.
Supply
* 11:00am: Fed to purchases $450m-$600m TIPS in 2018-2044
sector
* 11:00am: U.S. to announce plans for auction of 3M/6M bills
* 1:00pm: U.S. to sell $13b 30Y bonds in reopening
Posted in Uncategorized | Comments Off on The Day Ahead
Thursday, July 10th, 2014
In my early morning opening post I noted that 10 year Spain/10 year US had widened to 26.7 from 18.9 yesterday morning. That spread is now 29.9.
The Long Bond has caught a bit of a bid as 10s 30s has narrowed to 82.1 from 82.6 and 5s 30s has narrowed ...
Posted in Uncategorized | Comments Off on Morning Miscellany
Thursday, July 10th, 2014
Some support and resistance levels in FX via Bloomberg:
Major Currencies’ Resistance, Support Levels
2014-07-10 10:40:04.458 GMT
By TJ Marta
July 10 (Bloomberg) -- Levels for major currency pairs:
* EUR/USD
* 3rd resistance: 1.3678 200-DMA
* 2nd resistance: ~1.3670 April 4 low, May 27-June 9
highs,
* 1st resistance: 1.3658 50-DMA
* Spot: 1.3625
* 1st support: ~1.3590 late-May, early-June, late-June
lows
* 2nd support: 1.3576 July 7 low
* 3rd support: ~1.3505 Jan. 20, June lows
* USD/JPY
* 3rd resistance: 102.16 100-DMA
* 2nd resistance: 101.91 50-DMA
* 1st resistance: 101.86 200-DMA
* Spot: 101.32
* 1st support: ~101.25 support in March, April, May, July
* 2nd support: ~100.80 Feb., May lows
* 3rd support: 100.61 Sept. high
* EUR/JPY
* 3rd resistance: 139.28 July 3 high
* 2nd resistance: 139.18 50-DMA
* 1st resistance: ~138.90 late-June resistance
* Spot: 137.99
* 1st support: 138.01 76.4% retrace of Feb.-March rally
* 2nd support: 137.92 June 26 low
* 3rd support: ~137.75 June lows
* GBP/USD
* 3rd resistance: 1.8668 Sept. 2008 high
* 2nd resistance: 1.7447 Sept. 2008 low
* 1st resistance: 1.7180 July 4 high
* Spot: 1.7117
* 1st support: 1.7086 July 8 low
* 2nd support: 1.7063 June 19 high
* 3rd support: 1.7043 Aug. 2009 high
* USD/CAD
* 3rd resistance: ~1.0820 May lows
* 2nd resistance: 1.0807 200-DMA
* 1st resistance: 1.0694 July 8 high
* Spot: 1.0660
* 1st support: 1.0621 July 3 low
* 2nd support: ~1.0565 Aug. high, Dec. low
* 3rd support: 1.0526 Nov. 14 high
* AUD/USD
* 3rd resistance: 0.9758 Oct. 23 high
* 2nd resistance: 0.9505 July 1 high
* 1st resistance: ~0.9440/0.9460 April 10, June highs
* Spot: 0.9373
* 1st support: 0.9349 50-DMA
* 2nd support: 0.9329 July 3 low
* 3rd support: 0.9322 June 18 low
* NZD/USD
* 3rd resistance: 0.9260 April 1980 low
* 2nd resistance: ~0.9000 Nov., Dec. 1976 lows
* 1st resistance: 0.8843 Aug. 2011 high since 1981
* Spot: 0.8808
* 1st support: ~0.8794 late-June highs
* 2nd support: 0.8714 July 7 low
* 3rd support: 0.8662 June 25 low
Posted in Uncategorized | Comments Off on FX Levels