Archive for September, 2014
Wednesday, September 24th, 2014
Via Brown Brothers Harriman:
Dollar Rangebound, Awaiting Fresh Signals
- Kansas City Fed President George came out with some hawkish remarks yesterday, but we do not place much weight on them
- There were some interesting developments out of Japan regarding FX and sanctions against Russia
- German IFO for September came in at ...
Posted in Uncategorized | Comments Off on FX
Wednesday, September 24th, 2014
Via Bloomberg:
IG CREDIT: Volume Rises, Spreads Ease Wider; SUNTOR to Price
2014-09-24 09:46:25.462 GMT
By Robert Elson
Sept. 24 (Bloomberg) -- The final Trace count for secondary
trading was $15.1b vs $10.6b Monday and $14.7b the previous
Tuesday. 10-DMA $13.1b; 10-DMA of only Tuesday sessions $12.7b.
* 144a trading added another $2.3b of IG volume
* BAC ...
Posted in Uncategorized | Comments Off on Secondary Market Corporate Bond Trading Yesterday
Wednesday, September 24th, 2014
Professor Jonathan Turley of George Washington University is a left wing college professor who has been on a crusade against the imperial Presidency and executive overreach. He has written a post at his blog on the new bombing campaign in Iraq and Syria and the unconstitutional nature of that action.
In ...
Posted in Uncategorized | Comments Off on On the Imperial Presidency
Wednesday, September 24th, 2014
Via the WSJ:
Pimco ETF Draws Probe by SEC
Regulators Are Probing Whether Returns Were Artificially Inflated for an ETF at Bill Gross's Firm
By
Kirsten Grind,
Gregory Zuckerman and
Jean Eaglesham
Sept. 23, 2014 10:03 p.m. ET
The Securities and Exchange Commission is investigating whether bond giant Pacific Investment Management Co. artificially boosted the returns of a ...
Posted in Uncategorized | Comments Off on SEC Investigates Pimco
Wednesday, September 24th, 2014
Mario Draghi was on French radio saying that rates would stay low for as long as it takes to put inflation back at 2 percent.
Via Reuters:
(Reuters) - The European Central Bank will keep monetary policy loose for as long as it takes to push ultra-low inflation in the euro zone ...
Posted in Uncategorized | Comments Off on Draghi Speaks
Wednesday, September 24th, 2014
Short term rates are plunging and some T bill rates went negative yesterday. The WSJ chronicles the reasons for the search for yield in the front end. Among the culprits are the FOMC cap on reverse repo, negative rates in Europe and quarter end window dressing.
Via the WSJ:
Treasury-Bill Yield Tips ...
Posted in Uncategorized | Comments Off on Negative Yield
Tuesday, September 23rd, 2014
That was the title of a Sam Cooke song circa 1965 which became an anthem of the Civil Rights movement. According to Wikipedia the song was inspired by incidents in Cooke's life in which he experienced the harsh sting of racial discrimination. In addition Wikipedia reports that Cooke was so ...
Posted in Uncategorized | Comments Off on A Change is Gonna Come
Tuesday, September 23rd, 2014
Via Merrill Lynch Research:
Spreads vs. Rates 101. For those that forgot, this week has been a reminder of what the textbook relation between credit spreads and interest rates looks like - i.e., negative correlation, as in lower rates, wider spreads. That represents a departure from both the bigger picture post ...
Posted in Uncategorized | Comments Off on Merrill Lynch on Credit Spreads
Tuesday, September 23rd, 2014
The FT writes on the decline in inflation expectations as measured by TIPS.
Via the FT:
Treasury market cuts US inflation outlook
By Michael Mackenzie
The US bond market has slashed expectations of future inflation to their lowest level in nearly three years, highlighting the challenge facing the Federal Reserve as it moves towards ...
Posted in Uncategorized | Comments Off on Breakevens Declining
Tuesday, September 23rd, 2014
Via CRT Capital
Treasury volumes were light on Tuesday – not a surprise given the lack of inspired developments. Overall, cash trading at just 71% of the 10-day moving-average. 5s retained the position as the most active issue throughout the day, ending with a 38% marketshare. 10s were a distant second ...
Posted in Uncategorized | Comments Off on light Volume Day