Archive for September, 2014

Gross Leaves and Bonds Sell Off

Friday, September 26th, 2014

Bill Gross is leaving PIMCO for Janus Capital and the bond market has sold off about five basis points. (I am on Amtrak today and the WSJ page I refer to for prices does not load well. ) I am told the move is a parallel shift in the curve ...

GDP

Friday, September 26th, 2014

TDSecurities on GDP The third and final estimate of Q2 GDP came in spot-on market expectations, rising to 4.6% from 4.2%. The higher Q2 GDP print takes the average pace of H1 2014 growth to 1.3% - substantially higher than many investors had anticipated given the weather-induced Q1 dip. While personal ...

Corporates

Friday, September 26th, 2014

Long dated bank and finance paper opening unchanged to one basis point tighter. IG 22 unchanged at 61 1/2  62. Issuance should be light today and into month end next week. Spreads are in the hands of the equity market and other fixed income sectors.

FX

Friday, September 26th, 2014

Via Marc Chandler of Brown Brothers Harriman: Dollar Stages a Shallow Pullback - The dollar's brief and shallow pullback provided a new buying opportunity - The dollar bloc continues to underperform - There was a bit of chatter in the markets about losses in high yield bonds this week - Outside of that occasional ...

What to Watch Today

Friday, September 26th, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: GDP Annualized q/q, 2Q final, est. 4.6% (prior 4.2%) * Personal Consumption, 2Q, est. 2.9% (prior 2.5%) * GDP Price Index, 2Q, est. 2.1% (prior 2.1%) * Core PCE q/q, 2Q, est. 2% (prior 2%) * 9:55am: UMich Confidence, Sept. final, est. 84.8 (prior 84.6)

Overnight Flows

Friday, September 26th, 2014

Dealers report some central bank sellers in the 4 year/5 year sector. Fast money sold the 5 year note. Real money sold the 10 year sector to buy other sovereign debt.

Overnight Curvology

Friday, September 26th, 2014

I am travelling today so this is little different format. The yield curve had a bifurcated result overnight when viewed against levels in New York at 930PM. The yield on the 2 year note increased to 0.563 from 0.559. The yield on the 3 year note climbed to 1.024 from 1.021. ...

Japanese Export Money

Thursday, September 25th, 2014

Via Bloomberg: Japanese Bought Net 773.9 Billion Yen Overseas Debt Last Week 2014-09-25 23:51:41.490 GMT By Isaac Aquino Sept. 26 (Bloomberg) -- Japanese investors were net buyers of foreign bonds during the week ended Sept. 19 according to figures released by the Ministry of Finance in Tokyo. * Bought 773.9b yen ($7.1b) in overseas bonds and notes * ...

On Credit Spreads

Thursday, September 25th, 2014

Via Merrill Lynch Research: Coming up short amidst uncertainty. Given significant upside risks to payrolls we want to add some measure of hedge into that report out Friday next week. However following today's data and market reaction, and relative value to high yield, we add that hedge at today's wider spread ...

Dollar Rally Meets the 59th Song

Thursday, September 25th, 2014

Kit Juckes of SocGen with an informative piece on the dollar rally: I'm Four days into my US trip, kicking down cobblestones, letting the moment pass, etc etc. in Boston with a beer firmly in my sights in a few minutes. Many thanks to those with whom I have been able ...