Archive for August, 2014

Have a Merry Christmas

Tuesday, August 26th, 2014

It is one day less than four months to Christmas but electronics retailer Best Buy is out with a warning that it will be a difficult and competitive sales environment. Via the WSJ: Best Buy Predicts Rough Holiday Season Electronics Retailer Says Online Traffic Picked Up, Though Store Traffic Fell By Drew FitzGerald And Michael ...

Flows

Tuesday, August 26th, 2014

One dealers reported flows in an end of day note: Our Treasury flows were fast money selling of 30’s vs. 5’s, central bank buying of 10’s, and fast money selling of 10’s. In swaps, we had macro paying of 5’s-10’s-30’s, real money receiving of 15yr rate, and paying of US spreads. ...

Battle for the Senate

Tuesday, August 26th, 2014

The Democrats control the United States Senate currently with a majority of 55 to 45. There are actually two independents (from Maine and Vermont ) and those two independents give the Democrats and Harry Reid control with 55 votes. For the GOP to gain control they need to win six ...

Aging Baby Boomer Alert

Tuesday, August 26th, 2014

The New York Times, a newspaper, reports that Bob Dylan in November will release another round of the Basement Tapes. The Basement Tapes are recordings that Dylan made with The Band in the late 1960. This latest effort will include six CDs and 138 songs. Some of the songs are ...

Two Year Auction Result

Tuesday, August 26th, 2014

Via CRT Capital: *** An average takedown with strong non-dealer bidding 52% vs. 44% norm. *** * 2-year auction stops at 0.530% vs. a 0.532% 1-pm bid WI. * Dealers were awarded 48% vs. 56% average of last four 2-year auctions. * Indirects get 39.8% vs. 23% norm. * Directs take 12.1% vs. 21% average. * ...

Pierpont Securities on the ECB and QE

Tuesday, August 26th, 2014

Via Robert Sinche at Pierpont Securities: The ECB will hold its next policy meeting on Thursday 4 September following a flow of important data releases over the next week. Recent data releases have suggested the weak recovery has been getting weaker, with real GDP actually posting no gain during 2Q2014 (although ...

Treasury Market Update

Tuesday, August 26th, 2014

The Treasury curve continues to steepen though not as quickly or as dramatically as it flattened. I will reiterate what I wrote earlier and that is that client flows are light. and that most of this is professionals unwinding winning positions. Somebody once remarked to me that nobody ever got ...

Two Year Note Auction

Tuesday, August 26th, 2014

Via Ian Lyngen at CRT Capital The 2-year sector is little changed this morning, failing to price in any outright concession. We’re constructive on this afternoon’s auction nonetheless as it’s tied with July as the smallest 2-year size since March 2008, and the WI indicates the second highest yielding new 2-year ...

Swap spreads

Tuesday, August 26th, 2014

Swap Spreads are mixed today. The 2 year spread is 1/2 basis point tighter and the 7 year spread is 1/2 basis points wider. All other benchmark spreads are unchanged in extremely light trading. One salesman with whom I conversed said that there was no thematic trade or resting position in ...

MBS

Tuesday, August 26th, 2014

MBS opened wider by 1 ticks to 2 ticks this morning. yesterday saw solid buying and spread tightening early and then reversal later in the day as hedge funds became sellers. There was also somewhat larger than usual origination selling and the residue of that selling remains with the market ...