Archive for September, 2014

Secondary market IG Trading Yesterday

Friday, September 19th, 2014

Via Bloomberg: By Robert Elson Sept. 19 (Bloomberg) -- The final Trace count for secondary trading was $14.3b vs $14.5b Wednesday and $13.3b the previous Thursday. 10-DMA unchanged at $13.1b vs $13.2b, the highest count since late May; 10-DMA of only Thursday sessions $12.5b. * 144a trading added another $2.4b of IG volume * GS 3.85% 2024 ...

September 19 2014 Opening

Friday, September 19th, 2014

Prices of Treasury coupon securities continue to be under assault as the markets declined once more overnight in a session dominated by the defeat of the proposal to split Scotland from the United Kingdom. The defeat of that measure permits participants to refocus on economic fundamentals and monetary policy and ...

Next Stage of Abenomics

Friday, September 19th, 2014

The Japanese Prime Minister Abe pens an Op Ed piece for the WSJ on the next stage of his eponymously named program. He speaks of lower corporate taxes and deregulation as well as programs to assist women. Via the WSJ: Opinion The Next Stage of Abenomics Is Coming Make no mistake, Japan will emerge ...

Goldman Sachs on the UK

Friday, September 19th, 2014

Via a fully paid up subscriber: UK VIEW: Goldman Sachs has left its central economic forecast for the UK economy unchanged following Scotland rejecting independence, but it has "removed a downside risk to UK economic growth. "Our outlook is relatively positive: we continue to forecast GDP growth of 3.4% in 2014, ...

FX Very Early

Friday, September 19th, 2014

Via Marc Chandler of Brown Brothers Harriman: Kingdom Remains United; Stealing Rally Extended but Stalls - Scotland voted to remain part of the United Kingdom in a vote that was not as close as the opinion polls suggested - The sterling opportunity may reside more on the crosses than against the greenback, given ...

Mutual Fund and Other Flows

Thursday, September 18th, 2014

Via Merrill Lynch Research:   Out of Treasuries, into equities. With intensifying rate hiking speculation over the past week (ended Wednesday), not surprisingly the fund category "All fixed income", which includes Treasury funds that we do not break out separately, turned to a modest outflow of $2.86bn, from an inflow of $0.81bn ...

Household Wealth Hits Record

Thursday, September 18th, 2014

Via the WSJ and free lifetime subscription to acrossthecurve.com if you  find the Piketty Moment: ECONOMY U.S. Household Wealth Hits Fresh Record Consumer Borrowing Climbs at Fastest Pace Since the First Quarter of 2008 By NEIL SHAH CONNECT Sept. 18, 2014 12:00 p.m. ET Americans' wealth hit the highest level ever in the second quarter amid a rise ...

TIPS Post the Auction

Thursday, September 18th, 2014

Via Richard Gilhooly TDSecurities: A game of whackamole has now commenced in the TIPs market, whereby Dealers who bought paper they did not anticipate buying are looking to offset risk in 5s and 30s, with the first trade in 10yr breaks at 202.3bp shortly after the auction result. The tail of ...

TIPS : Treasury Gave Auction and Nobody Came

Thursday, September 18th, 2014

Via CRT Capital : *** The 10-year TIPS auction was weak with non-dealer bidding at 58.3% vs. 62% norm and a 4.7 bp tail. Largest tail since Sept 2012. *** * 10-year TIPS auction stops at 0.610% vs. a 0.563% 1-pm bid WI. * Dealers were awarded 41.7% vs. 38% average of last ...

Thoughts on Euro and the TLTRO

Thursday, September 18th, 2014

Via Richard Gilhooly at TDSecurities: The 5y5y inflation forward in Europe is further below 2.00% this morning and with the TLTRO coming in well short of the consensus range of €100-300bn, at €82.6bn, questions will start to arise as to how Draghi adds credible details to his suggestion that the ECB's ...