Bund vs US
Wednesday, September 3rd, 2014The spread between the 10 year Bund and the 10 year Treasury is now at the widest level recorded since humans left all fours and began walking erect. That spread is currently at 149.5 basis points.
Archive for September, 2014
The spread between the 10 year Bund and the 10 year Treasury is now at the widest level recorded since humans left all fours and began walking erect. That spread is currently at 149.5 basis points.
More on Liquidity Coverage Rules
Wednesday, September 3rd, 2014I posted this note last night on liquidity coverage rules which regulators will vote on today. Here is an analysis by TDSecurities of some nuances to watch for: The Fed will vote to put into place final Liquidity Coverage Ratio (LCR) rules on Wednesday. We do not expect any sweeping changes to ...
September 3 2014 Opening
Wednesday, September 3rd, 2014Prices of Treasury coupon securities have slumped in a dual reaction to stronger economic data from China and because of the announcement of a permanent ceasefire between Ukraine and Russia. The HSBC China PMI for manufacturing jumped to a seventeen month high as it increased from a four year low ...
Liquidity Coverage Rules
Tuesday, September 2nd, 2014The WSJ reports on the advent of liquidity coverage rules which regulators intend as a buffer against the type of crisis which flowered when Lehman Brothers crumbled (can you believe it was nearly six years ago) in September 2008. The new rules have as their intent that banks have sufficient ...
Final Tally on Corporate Issuance
Tuesday, September 2nd, 2014Today was the 4th heaviest issuance day of the year. Via Bloomberg: IG CREDIT: 4th Busiest Issuance Session of 2014 to Start Sept. 2014-09-02 18:43:17.271 GMT By Lisa Loray Sept. 2 (Bloomberg) -- $21.35b is expected to price from 13 issuers in busiest session since $23.6b priced on March 10 and 4th highest volume session of the ...
End of Day Analysis
Tuesday, September 2nd, 2014Via Richard Gilhooly of TDSecurities: The new month kicked off with a familiar push higher in yield, as the month-end sell-off extended and continued to steepen the curve. The same dynamics of long-end supply announced Thursday, hedging for strong US economic data later in the week (and today) and asset allocation ...
Research Roundup
Tuesday, September 2nd, 2014Via Bloomberg: RESEARCH ROUNDUP: UST Yields, Positioning Views 2014-09-02 15:34:03.85 GMT By Elizabeth Stanton Sept. 2 (Bloomberg) -- Strategist views on UST yields and curve spreads from published research: * BofAML * ECB outlook, geopolitics drove last month’s gains in USTs, most of which occurred during overnight sessions, strategists Priya Misra and Shyam Rajan said in Aug. 29 report; story ...
Updated Corporate List
Tuesday, September 2nd, 2014IG CREDIT: Thirteen Deals to Price, Busiest Session in 2 Months2014-09-02 15:25:31.652 GMTBy Lisa Loray Sept. 2 (Bloomberg) -- Thirteen issuers have announceddeals to start September, the most since June 10, after $54.035bpriced in August, the lowest monthly volume YTD. * Today’s calendar is heavily financial * Tomorrow’s calendar ...
ISM Analysis
Tuesday, September 2nd, 2014Via Gennadiy Goldberg of TDSecurities The ISM manufacturing report came in notably better than expected in August, rising to 59.0 from 57.1 even as markets expected a modest pullback to 57.0. Despite moderation in some regional Fed manufacturing indicators, the ISM index appears to have followed last week’s much stronger than ...
Gilhooly on the Curve and ECB
Tuesday, September 2nd, 2014Via Richard Gilhooly at TDSecurities: The long-end has continued Friday's pre-3pm sell-off, as longs that were entered in the bond sector in advance of the month-end bid were underwhelmed by the lack of buying and started liquidating at 2.55pm. The big flattening move in the curve after the 5yr and before ...