Archive for August, 2014

Hollande with Logorrhea

Sunday, August 31st, 2014

Via Bloomberg: BN 08/30 23:04 *HOLLANDE SAYS EU SUMMITS IN OCTOBER, NOVEMBER TO TACKLE ECONOMY BN 08/30 23:04 *HOLLANDE SAYS LOW INFLATION, WEAK DEMAND IS EUROPE-WIDE PROBLEM +------------------------------------------------------------------------------+ Hollande Says Low Inflation Is a European Problem, Sees ECB Role 2014-08-31 00:07:08.713 GMT By Jonathan Stearns Aug. 31 (Bloomberg) -- French President Francois Hollande says the European Central Bank ...

Friday Flows

Friday, August 29th, 2014

Flows via a fully paid up subscriber Hearing International buying of back end away. We have seem some small buying of the belly v the back end, but nothing market moving. We also had a decent size seller of 2yr notes.  

Spending and Income Data

Friday, August 29th, 2014

Via Ginnadiy Goldberg at TDSecurities: July personal income and spending disappointed market expectations. While an upward revision to last month’s personal income data left the 0.2% rise in July income largely in line with market expectations, spending activity disappointed, falling 0.1%. Markets were expecting a modest 0.2% gain in July despite ...

Recap Secondary Corp Trading Yesterday

Friday, August 29th, 2014

Via Bloomberg IG CREDIT: Long VZ Issues Led Trading; 2 Set to Price Today 2014-08-29 10:06:34.823 GMT By Robert Elson Aug. 29 (Bloomberg) -- The final Trace count for secondary trading was $8.1b vs $11.1b Wednesday and $11.7b the previous Thursday. 10-DMA drops to $9.6b, a new low for 2014, vs $10b, as $12b on Aug 14 ...

What to Watch for Today

Friday, August 29th, 2014

Via the good folks at Bloomberg: * (All times New York) Economic Data * 8:30am: Personal Income, July, est. 0.3% (prior 0.4%) * Personal Spending, July, est. 0.2% (prior 0.4%) * PCE Deflator m/m, July, est. 0.1% (prior 0.2%) * PCE Deflator y/y, July, est. 1.6% (prior 1.6%) * PCE Core m/m, July, est. 0.1% (prior 0.1%) * ...

FX

Friday, August 29th, 2014

Via Marc Chandler of Brown Brothers Harriman - The US dollar is consolidating, largely within yesterday's ranges - There are four new pieces of macro-economic puzzle that have been delivered today: EU data, the outlook for the German economy, UK housing, and weak Japanese data - Another big day ahead for Brazil with ...

Overnight Flows

Friday, August 29th, 2014

Dealers report Japanese real money sellers of 7s and 10s and bank portfolio selling of 3s and 5s. One dealer commented that real money shorts covered yesterday and we might actually see several days of higher yields the market consolidates recent gains.

Administrative Note

Friday, August 29th, 2014

I am in quasi vacation mode for the holiday weekend so blogging will turn sparse once I get through my early morning reading. Have a great weekend. JJJ

Pent Up Wage Deflation

Friday, August 29th, 2014

Via the FT: US economy: ‘pent up wage deflation’ blues Gavyn Davies | Aug 29 09:30 | 1 comment | Share “Pent up wage deflation” is an unfamiliar and somewhat abstruse term dropped into the economic lexicon last week by Janet Yellen ...

Abbreviated Opening

Friday, August 29th, 2014

The Treasury yield curve is somewhat steeper overnight. The 5s 10s spread which closed in New York at 70.4 is now 70.6 and 5s 30s which closed at 144.1 is now 144.8. Dealers report that activity in brokers market suggests someone initiating a steepener or unwinding a profitable flattener. The ...