Archive for September, 2014

TDSecurities on ECB and Yield Curve

Thursday, September 4th, 2014

Via Richard Gilhooly at TDSecurities: So, the ECB did not underwhelm this time by cutting the main refi rate to 5bp and taking 10bo off across the board, allowing short-end Europe to trade more negative with the deposit rate at -20bp. The ABS purchase program was hinted at last week when ...

Treasury market update

Thursday, September 4th, 2014

The yield curve is in a frenzy with ECB cutting rates more deeply negative. As I compose this electronic missive I see 5s 30s at 150 . That spread was 146.5 at 530AM. Similarly the 10s 30s spread has moved to 75.8 from 74.1 early this morning. What factors are motivating ...

Corporate issuance

Thursday, September 4th, 2014

The list is a little less exhaustive than the prior two days but quite respectable given the magnitude of the earlier flows. Via Bloomberg: The Province of Ontario B'Mark Aa2/AA-    7 yr Global spread set ms+ 34 Kommuninvest 500mm Aaa/AAA  2 yr spread set ms -2 Credit Suisse AG acting through NY Branch B'Mark A1/A  ...

Corporates

Thursday, September 4th, 2014

Long financial paper opening mostly unchanged. The IG 22 is 3/4 basis point tighter at 56 mid.

Draghi Headlines

Thursday, September 4th, 2014

Via a fully paid up subscriber: BN 09/04 12:47 *DRAGHI SAYS QE WAS DISCUSSED BFW 09/04 12:47 *DRAGHI: PROGRAM’S COMPLEXITY MAKES JUDGEMENT ON SIZE DIFFICULT BN 09/04 12:47 *DRAGHI: PROGRAM'S COMPLEXITY MAKES JUDGEMENT ON SIZE DIFFICULT BFW 09/04 12:46 *DRAGHI: PURPOSE OF COVERED BOND PROGRAM DIFFERENT THAN PREVIOUS BN 09/04 12:46 *DRAGHI: PURPOSE OF COVERED ...

Morning Miscellany

Thursday, September 4th, 2014

With the ECB lowering rates and expectations of something dovish and bullish from the Draghi press conference Eurpean bonds are screaming. When I wrote early this morning (about 520AM) 10 year Bunds to US was - 145.5. That spread is now -148. Similarly 10 year Spain to US was -13.6 ...

A Consummation Devoutly To be Wished For

Thursday, September 4th, 2014

We are about two months from the mid term elections and Nate Silver of ESPN and the 538 blog forecasts a 64 percent probability that the GOP will take back the Senate from the barbarians who currently control it.

Hilsenrath Speaks

Thursday, September 4th, 2014

Via the WSJ: Grand Central: Friday’s Jobs Report Next Clue on Likely Fed Policy Path The Wall Street Journal’s Daily Report on Global Central Banks for Thursday, September 4, 2014:   HILSENRATH’S TAKE: Friday’s Jobs Report Next Clue on Likely Fed Policy Path During the past 12 months, the U.S. jobless rate has fallen by ...

ECB ABS Purchase Story

Thursday, September 4th, 2014

Via Reuters: Here is link to full story on ECB and ABS purchases.

Headlines

Thursday, September 4th, 2014

These headlines stirring market and responsible for Bund sell off on no QE in govies. looks like these headlines (attached) stirred ECB expectation this AM in Ldn trading *ECB GOVERNING COUNCIL DISCUSSING ABS/COVERED BOND PURCHASE PLAN AT TODAY'S MEETING - PEOPLE FAMILIAR WITH DISCUSSIONS *PROGRAMME WOULD BE WORTH UP TO 500 BLN EUROS ...