Archive for August, 2014
Friday, August 22nd, 2014
Some Ukraine headline from earlier in the evening which gave Treasury market bit of a bid:
08:49:34 RTRS - RUSSIA WARNS AGAINST ANY ATTEMPTS TO DISRUPT AID CONVOY
MOVEMENT
09:40:36 RTRS - REUTERS WITNESS SAYS ABOUT 20 RUSSIAN AID TRUCKS CROSSED
UKRAINE BORDER
09:41:30 RTRS - REUTERS WITNESS SAYS TRUCKS ARE ACCOMPANIED BY SMALL
NUMBER OF ...
Posted in Uncategorized | Comments Off on Ukraine Headlines
Friday, August 22nd, 2014
This is lengthy article by Jon Hilsenrath of the WSJ which breaks no new ground but does a fine job of summarizing the global economy and the policy choices and dilemmas confronting central bankers.
Via Jon Hilsenrath and the WSJ:
Central Bankers Wrestle With Easy Money Amid Uneven Global Recovery
Sluggish Growth Confronts ...
Posted in Uncategorized | Comments Off on Hilsenrath to Start the Day
Thursday, August 21st, 2014
Corporate Treasurers have been prodigious issuers of debt in Q2. However, Merrill Lynch research reports that leverage decreased in the quarter as earnings outstripped the increase in debt. At the end of the quarter Merrill estimates leverage was down to 1.88 from 1.83 at the end of Q1. Merrill expects ...
Posted in Uncategorized | Comments Off on Leverage
Thursday, August 21st, 2014
The FT has an article on the changing nature of the Jackson Hole conclave at which Ms Yellen will deliver an ex cathedra proclamation tomorrow. The article details how the list of invitees does not include street economists and has returned to its roots as a place for international central ...
Posted in Uncategorized | Comments Off on Jackson Hole Reconsidered
Thursday, August 21st, 2014
A fully paid up subscriber forwarded this note by SOcGen research in which they forecast that durable goods orders will record a gain of 24.5 percent when the number is released next week. That will exceed the previous record of 16.5 percent achieved in 2000. The research piece notes the ...
Posted in Uncategorized | Comments Off on Durables Goods Orders Next Week at An Historic Level
Thursday, August 21st, 2014
Via a fully paid up subscriber:
SAN FRANCISCO FED PRESIDENT WILLIAMS says that Fed officials "really want to be data dependent" when making policy and that the summer of 2015 is a reasonable date for the first rate hike. Rates could climb earlier if there is "really good" improvement in the ...
Posted in Uncategorized | Comments Off on San Francisco Fed Pres Chimes in on Rate Hikes
Thursday, August 21st, 2014
Via CRT Capital:
* 5-year TIPS auction stops at -0.281% vs. a -0.275% 1:00 PM bid WI.
* Bid/Cover 2.48 vs. 2.64 average.
* Dealers were awarded 40.2% vs. 53% average for 5-year TIPS.
* Indirects get 56.3% vs. 40% norm.
* Directs take 3.5% vs. 7% average.
* Dealer Hit-Ratio: Dealers take 25% of what ...
Posted in Uncategorized | Comments Off on Five Year TIPS Result
Thursday, August 21st, 2014
The Treasury market is quiet today and most participants support the view that investors are squaring positions and hunkering down in the deep weeds until Ms Yellen shows her cards. There is a TIPS auction in a few minutes and there are very conflicting views on that one. I wrote ...
Posted in Uncategorized | Comments Off on Midday Miscellany
Thursday, August 21st, 2014
The Treasury in its infinite wisdom will auction $16 billion 5 year TIPS today. There is some good news and some bad news for the issue. The issue has cheapened significantly on breakeven. The breakeven was 203 as recently as June 24 and the WI trades around 188. One trader ...
Posted in Uncategorized | Comments Off on TIPS Auction
Thursday, August 21st, 2014
Corporate Bonds are opening firmer. One participant reports that intermediate industrials are 1 tighter and 25 year and longer paper is 2 tighter. The IG 22 is at 56 7/8 and tightened 7/8 overnight.
Supply will remain light until after the Labor Day Holiday when issuance should pick up again. We ...
Posted in Uncategorized | Comments Off on Spread Product