Archive for September, 2014

Swap Spreads

Friday, September 12th, 2014

Swap spreads have widened today in the ugly sell off. Two year spreads are 1/4 basis points wider and the rest of the list is 1/2 basis point wider. One market maker reported a small amount of paying by speculators and end users. He said that some of the speculators paying ...

Corporate Bond Positions

Friday, September 12th, 2014

Via Bloomberg: IG CREDIT: Dealer Positions in Corporate Bonds as of Sept 3 2014-09-12 11:18:52.371 GMT By Robert Elson Sept. 12 (Bloomberg) -- Dealer positions in corporate bonds fell $1.6b to $33.2b as of Sept 3. $45.9b, seen Mar 5, was the high for the series Fed began April 2013; $23b low was Aug 28, 2013. * Short ...

What to Watch Today

Friday, September 12th, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Retail Sales Advance, Aug., est. 0.6% (prior 0%) * Retail Sales Ex Auto, Aug., est. 0.3% (prior 0.1%) * Retail Sales Ex Auto and Gasoline, Aug., est. 0.5% (prior 0.1%) * Retail Sales Control Group, Aug., est. 0.5% (prior 0.1%) * 8:30am: Import Price Index, ...

FX

Friday, September 12th, 2014

Via mark Chandler at Brown Brothers Harriman: Dollar Firmer Ahead of Next Week's Event Risk - Markets consolidate ahead of big event risk next week - The IMF has weighed in on the Scottish referendum, noting that a yes vote could lead to some short-term market turbulence - Euro zone July IP came at ...

China Data

Friday, September 12th, 2014

In the overnight session China released data on aggregate financing which is that nations broadest measure of credit expansion. Aggregate financing in August was 957.4 billion yuan. Paid prognosticators has expected a print of 1.135 trillion. A Bloomberg story I read quoted one analyst opining that in concert with other soft ...

Secondary Market Corporate BondTrading Yesterday

Friday, September 12th, 2014

Via Bloomberg: G CREDIT: Volume Falls; Week’s Deals Near $40b, Sept Near $100b 2014-09-12 10:05:12.167 GMT By Robert Elson Sept. 12 (Bloomberg) -- The final Trace count for secondary trading was $13.3b vs $15.1b Wednesday and $15.1b the previous Thursday. 10-DMA $11.8b; 10-DMA of only Thursday sessions $12.3b. * 144a trading added another $2.3b of IG volume * VZ ...

Non Market Story on Solar Weather

Friday, September 12th, 2014

Years ago I trafficked in ham radio (as in Morse Code) and one needed to follow the activity of the sun to know what the propagation of one's radio signal would be on a given day. So this Bloomberg story on a significant solar storm caught my attention. Via Bloomberg: Solar Storms ...

September 12 2014 Opening

Friday, September 12th, 2014

Prices of Treasury coupon securities have sagged in overnight trading as participants quake and quiver and price in a dire outcome at next week's FOMC meeting. Regarding the local trade I think the more influential problem is positioning. It is an ancient adage which holds that in the short run ...

Reuters Story on Participation Rate

Friday, September 12th, 2014

Attached is a Reuters story which weighed on market sentiment overnight. The story reports on a research paper  authored by economists from the Cleveland Fed and the Federal Reserve Board which attributes most of the decline in the participation rate to the aging of the population (structural) rather than the ...

Thirty Year Result

Thursday, September 11th, 2014

I am away from acrossthecurve.com's ostentatious global headquarters so blogging is sparse today. Here is CRT Capital on the results of the 30 year: Today at 1:03 PM *** The auction was well-received with a 2.1 bp stop-through and non-dealer bidding at 67% vs. 63% norm *** * 30-year auction stops at 3.240% vs. ...