Archive for September, 2014

Treasury Miscellany

Wednesday, September 3rd, 2014

The Treasury market is more active than it had been when the calendar read August but the level of activity today is quite diminished from the level which prevailed just yesterday. There is certainly a bearish bias coursing through the market but several factors combine to restraint that bearish sentiment. Tomorrow ...

Update on Corporate Flood

Wednesday, September 3rd, 2014

Via Bloomberg at 930AM: IADB B'Mark Aaa/AAA  2 yr Global final spread ms -9 Republic of Finland B'Mark Aaa/AAA  5 yr  144A reg S ipt ms -2 area Commonwealth Bank of Australia B'Mark Aa2/AA-  2/4 part 3 yr fxd and/or frn, 5 yr fxd and/or frn ipt 3 yr fxd + mid 50's frn 3ml equiv 5 yr fxd ...

MBS

Wednesday, September 3rd, 2014

Mortgages had a great day yesterday as FNMA 3s outperformed Treasuries by 6 ticks. One analyst noted that  yesterday was only the fourth time in 2014 that MBS had outperformed Treasury hedges by that much. The Fed was a big buyer yesterday but higher yields and steepening curve attracted hedge ...

Corporate Spreads

Wednesday, September 3rd, 2014

The corporate bond market is opening mixed following the very heavy issuance parade yesterday. There was significant issuance in bank and finance sector paper yesterday and that continues this morning. Morgan Stanley has announced a 12 year and Abbey National is bringing a 5 year. Spreads in that sector have ...

The Flood Begins

Wednesday, September 3rd, 2014

Via Bloomberg: Morgan Stanley B'Mark          12 yr sub debt ipt T+200-205 asap

Secondary Corporate Bond Trading Yesterday

Wednesday, September 3rd, 2014

Via Bloomberg: IG CREDIT: Lowest Tuesday Volume of 2014; 4 Names Set to Price 2014-09-03 11:11:57.99 GMT By Robert Elson Sept. 3 (Bloomberg) -- The final Trace count for secondary trading was $9.3b, the lowest Tuesday session of 2014, vs $5.4b Friday and $11.4b the previous Tuesday. 10-DMA drops to $9.3b, a new low for 2014; 10-DMA ...

JPM Duration Survey

Wednesday, September 3rd, 2014

All Clients               Long            Neutral        Short Sept 02 2014          11                   49                 40 Aug  25 2014          13                   53                 34 Aug 18  2014           13                   51                 36 Active Clients Sept 02 2014           8                    31                61 Aug  25 2014           8                    46                46 Aug  18  2014           8                    38                54   In the all clients survey, the percent of longs decreased by 2, the percent of ...

Corporate Issuance

Wednesday, September 3rd, 2014

Expect another busy day of corporate issuance. This is what we know thus far about what will price today: Via Bloomberg: Wednesday - Sept 3 $b Inter-Americn Dev Bk (IADB) Aaa/AAA BAML/C/Daiwa/GS Global 2Y MS -9   $b Republic of Finland (FINL) Aaa/AAA Barc/HSBC/JPM/Nordea 144a/Reg-S 5Y MS -2 area $500m Bank Nederlandse Gemeenten (BNG) Aaa/AA+, 144a/Reg-S 2Y ...

FX

Wednesday, September 3rd, 2014

Via Marc Chandler at Brown Brothers Harrriman: - News that Ukraine and Russia have agreed on a cease-fire in east Ukraine was greeted enthusiastically by investors - The divergence between Italy and Spain continues to widen, as evidenced by the PMI prints - The well telegraphed reshuffling of the Japanese cabinet was announced - ...

Trashing Cable

Wednesday, September 3rd, 2014

Kit Juckes is an FC strategist at SocGen. Here is an overnight note from him which comments on recent weakness in pound sterling. Via Kit Juckes at SocGen: Good Morning. Whatever the politics, the more divided the UK is, the weaker the pound will be. As the charts below show, sterling's correction ...