Archive for July, 2014

FX Thoughts

Friday, July 18th, 2014

Via a fully paid up subscriber: EU} In EURUSD we spent most of Ldn pinned on 1.3520s but we managed to get through stops and fill in some bids into 1.3500 there are more below 1.3480-85 where we have bids than stops. I should add that we did see decent buyers ...

The Streak is Dead

Friday, July 18th, 2014

The 1 percent move in the S and P yesterday ended the longest streak on non one percent moves for that index since the mid 1990s. I received this from a fully paid up subscriber via the Macro man blog. Via Macro Man: The streak is dead. It took red headline flashes of ...

Strategists Calls

Friday, July 18th, 2014

Via the Bloomberg: UST MORNING CALL: ‘Violent Intraday Swings’ Still Possible 2014-07-18 12:11:11.455 GMT By Monika Grabek July 18 (Bloomberg) -- “Today is a day to stay nimble and small. Volatility has crept back into the market though it is subdued this morning. My instinct is that we are not yet finished and we could have violent ...

Overnight Volume and Flows

Friday, July 18th, 2014

Via David Ader at CRT Capital: OVERNIGHT FLOWS: Treasury yields backed up overnight on Asian profit-taking.  Overnight volumes were strong with cash trading at 133% of the 10-day moving-average, while TY came in at 147% of norms. 10s were the most active issue, taking a 33% marketshare, while 5s were a ...

FX

Friday, July 18th, 2014

Via Mark Chandler at Brown Brothers Geopolitical events are overshadowing a light economic calendar ahead of the weekend.   The shooting down of the Malaysian plane over Ukraine and the Israel's launch of a ground assault in Gaza dominate the focus.  After a strong response that saw US 10-year yields fall ...

Dealer Positions

Friday, July 18th, 2014

Via Bloomberg: By Robert Elson July 18 (Bloomberg) -- Dealer positions in corporate bonds fell $3.8b to $36.5b as of July 9. $45.9b, seen Mar 5, was the high for the series Fed began April 2013; $23b low was Aug 28. * Short issues at $2.9b, down $91m; $3.4b high was March 5, $1.2b low Aug ...

Recap of Investment Grade Corporates of Yesterday

Friday, July 18th, 2014

Via Bloomberg: IG CREDIT: Short MS Issues Led Trading; Spreads Widen 2014-07-18 09:43:45.686 GMT By Robert Elson July 18 (Bloomberg) -- The final Trace count for secondary trading was $12.7b vs $12.8b Wednesday and $9.7b the previous Thursday. 10-DMA at $11.4b vs $10.6b, as $5.5b on July 3 falls from the count; 10-DMA of only Thursday sessions ...

July 18 2014 Opening

Friday, July 18th, 2014

Prices of Treasury coupon securities tumbled in overseas trading as the flight to quality bid necessitated by the downing of the Malaysian airliner and the incursion into Gaza by Israel has faded . Equity markets are lower but have rebounded from their worst levels. I had observed the Nikkei down ...

Early Tokyo Flows

Thursday, July 17th, 2014

The Nikkei is down hard and the Hang Seng is down moderately. S and P futures have rebounded from early lows and are only down 2 points. One dealer reports Asian bank selling of decent size in 10 years and real money Asia sellers of bonds. The market is off about ...

Merrill Lynch On Credit Spreads

Thursday, July 17th, 2014

Via Merrill Lynch Research: Geopolitical risks escalate. Following the tragic loss of a large Malaysian Airlines aircraft over eastern Ukraine risky asset classes sold off significantly, as stocks declined 1.2% on the day (S&P 500), IG credit spreads widened 3.5bps and HY prices declined about 0.75pt. At the same time hedges ...