Archive for September, 2014
Thursday, September 18th, 2014
The Treasury will auction $13 billion 10 year TIPS today at 100PM. That duration drop by Jack Lew and his minions is also weighing on sentiment. One market maker reports that TIPS have stabilized here and there has actually been end user buying late yesterday and today. The dilemma for ...
Posted in Uncategorized | Comments Off on TIPS Auction
Thursday, September 18th, 2014
Swap spreads are mixed today. The 2 year spread is unchanged. The 5 year note is wider by 1/2 basis point mostly on the specialness of the 5 year note. Tens are unchanged and 30s are 1/4 wider.
Traders in that market remain positioned for wider spreads. The next round of ...
Posted in Uncategorized | Comments Off on Swap Spreads and Other Miscellany
Thursday, September 18th, 2014
Via Bloomberg:
*Mizuho Bank Ltd. B'Mark A1/A+ 4 part
**3Y fxd and or frn, 5 and 10
**IPT 3Y fxd +75 area
frn 3ml +equiv
5Y fxd +95 area
10Y fxd +115 area
*The Toronto-Dominion Bank B'Mark Aaa/AAA
** 5 yr Covered Bond 144A Reg S
** IPT ms +30 area
** Books: BNP,C,RBC,TD
*American Express Credit Corporation B'Mark A2/A-
** 2 ...
Posted in Uncategorized | Comments Off on Corporate Bonds Today
Thursday, September 18th, 2014
The intermediate part of the Treasury curve is under severe pressure this morning as the thrashing which it took overnight continues. The pounding of the 5 year note reminds me of a scene in the original Godfather movie. If you recall the movie Sonny Corleone is slaughtered at the toll ...
Posted in Uncategorized | Comments Off on Don Vito Corleone and the 5 Year Note
Thursday, September 18th, 2014
The carnage in the Treasury market has not yet leaked over to the corporate market (though let me say that this info is about an hour old) as the IG 22 opened 1/2 tighter at 58 58 1/2 and long financials are 1 to 2 tighter.
If we turn into a ...
Posted in Uncategorized | Comments Off on Corporate Bond Spreads
Thursday, September 18th, 2014
The TLTRO made its European debut today and the result was dismal as usage lagged behind even the most pessimistic estimates. Here is a nice post at the BusinessInsider blog regarding the outcome with excerpts from analysts opinions on the subject.
Posted in Uncategorized | Comments Off on TLTRO FLOP
Thursday, September 18th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Initial Jobless Claims, Sept. 13, est. 305k (prior
315k)
* Continuing Claims, Sept. 6, est. 2.466m (prior 2.487m)
* 8:30am: Housing Starts, Aug., est. 1.037m (prior 1.093m)
* Housing Starts m/m, Aug., est. -5.2% (prior 15.7%)
* Building Permits, Aug., est. 1.040m (prior 1.052m,
revised 1.057m)
* ...
Posted in Uncategorized | Comments Off on What to Watch Today
Thursday, September 18th, 2014
Via Marc Chandler at Brown Brothers Harriman:
- The Scotland vote today is the main event, and as important as a "yes" vote would be, it is not the only event today
- Participation in the ECB's Targeted Long-Term Repo Operation was dismal
- Two other central banks met today
- In ...
Posted in Uncategorized | Comments Off on FX
Thursday, September 18th, 2014
Prices of Treasury coupon securities registered bifurcated results in overnight trading as the Long Bond leaped and the short maturities languished. Ergo, the yield curve experience a rather dramatic shift providing evidence that market participants are running with the hawkish dot story. The yield on the 5 year note increased ...
Posted in Uncategorized | Comments Off on September 18 2014 Opening
Wednesday, September 17th, 2014
Via Pierpont Securities:
ECB: THE FIRST AUCTION UNDER THE TLTRO (Targeted LTRO) WILL BE CONDUCTED TOMORROW, WITH RESULTS AROUND 5:15am. I continue to believe the take-up will be underwhelming.
CHINA: August report on property prices, as 64 of 70 cities reported declines in MOM prices in July. The weakness seems set to ...
Posted in Uncategorized | Comments Off on What to Watch Overnight