Archive for September, 2014

Emerging Markets Equities Slip Sliding Away

Thursday, September 11th, 2014

Via Bloomberg: Emerging Stocks Head for Longest Losing Streak in Nine Months 2014-09-11 08:59:45.705 GMT By Nguyen Kieu Giang Sept. 11 (Bloomberg) -- Emerging-market stocks fell for a sixth day, poised for the longest losing streak since November, as energy and technology shares led declines. Russia’s ruble weakened for a fourth day versus the dollar. Cnooc Ltd. and ...

Power Reverse Dual Currency Notes

Thursday, September 11th, 2014

Yesterday in this post on swap spreads I commented on the return of an exotic derivative tied to the weakening of the yen which was causing some widening of 30 year swap spreads. A fully paid up subscriber forwarded this comment which he left at another blog several years ago ...

FX

Thursday, September 11th, 2014

Via Marc Chandler at Brown Brothers Harriman: Scottish Jitters Past its Peak - The anxiety induced by last weekend's YouGov poll showing a majority favored Scottish independence may be past its peak - We note four other important events: suspiciously good Australian employment numbers, low inflation prints in China and Sweden, and reported ...

Opening Addendum

Thursday, September 11th, 2014

Dealers reported light flows overnight. I have heard of Japan based asset managers selling in the belly and real money in Europe buying 2s and 30s. It my opening piece I alluded to 30 year supply in Italy and UK. A subsequent dealer note reports that the UK sold 2044 bonds ...

September 11 2014 Opening

Thursday, September 11th, 2014

Prices of Treasury coupon securities have registered solid gains in overnight trading. I think part of the price gains are a result of what I refer to as the "way back" theory. What is that you ask? Simply that yields were way back from their lows and that prompts some ...

Imperial Presidencey Revisited

Wednesday, September 10th, 2014

Jonathan Turley is a law professor at George Washington University who supports the thrust of President Obama's progressive agenda. However, he has been a leader in criticizing the President's usurpation of legislative power and his extremely broad expansion of executive power. In this column he contests the President's assertion in ...

War In Iraq and Syria

Wednesday, September 10th, 2014

WSJ reports that Obama will announce broad coalition to defeat Islamic radical group ISIS. The story says that the ISIS group will have no sanctuary in Iraq or Syria. There will be no US troops on the ground. Via the WSJ: World News Obama to Say U.S. Will Lead Coalition to Roll Back ...

Swap Spreads and Exotica

Wednesday, September 10th, 2014

Swap spreads are mixed today. Two year notes are unchanged whiles 5s and 10s are  1/4 basis point wider. Thirty year spreads are a basis point wider. Spreads have widened in the belly as the supply of swappable corporate issuance diminishes. The spread widening in the 30 year sector reflects paying ...

Wednesday, September 10th, 2014

Via CRT Capital: *** The auction was mixed with a 0.5 bp tail, but non-dealer bidding at 66.5% vs. 60% norm *** * 10-year auction stops at 2.535% vs. 2.530% 1-pm bid WI. * Dealers were awarded 33.5% vs. 40% average of last four 10-year Reopenings. * Indirects get 53.0% vs. 41% norm. * Directs ...

Pierpont Securities on FOMC Next Week

Wednesday, September 10th, 2014

Via Pierpont Securities: It was my intent to save most of this analysis for a pre-FOMC write-up early next week, but given all of the discussion going on this week, I thought it might be helpful to get my thoughts out a few days earlier. With the September 16-17 FOMC meeting fast ...