Archive for October, 2014

Ruble Rubble

Friday, October 24th, 2014

The Russian Ruble continues to print new lows as the country is a bit of an international pariah and its main export (oil) is in a bear market. The FT offers some background on the story: MarketsRussia rouble rattled on rating agency reflection Another day, another record low for the Russian currency. As ...

FX

Friday, October 24th, 2014

Via Marc Chandler at Brown Brothers Harriman:  Ebola, EU Politics and Brazil's Elections in Focus - The headlines about a NY doctor testing positive for Ebola yesterday took off some of the enthusiasm for risk taking - Intra-EU politics is set to heat up again after it demands more funds from the UK ...

Flow

Friday, October 24th, 2014

Client active last night was subdued. One dealer reported small extension trades by central banks and little else.

Secondary market Corporate Bond Trading

Friday, October 24th, 2014

Via Bloomberg: IG CREDIT: Trading Volume Remains High, BAC Issues Most Active 2014-10-24 09:56:06.531 GMT By Robert Elson Oct. 24 (Bloomberg) -- The final Trace count for secondary trading was $16.6b vs $17.6b Wednesday and $17.9b Tuesday, the highest day since $18.1b April 23. * 144a trading added another $3.5b of IG volume * BAC 5.00% 2021 topped ...

Octoner 24 2014 Opening

Friday, October 24th, 2014

Prices of Treasury coupon securities have on balance registered losses when compared to levels which prevailed in the aftermath of the news that a New York City doctor had contracted the Ebola virus. On the release of that news the fixed income market rallied and equity futures slumped. Most of ...

Sloppy Property Prices in China

Thursday, October 23rd, 2014

Via Bloomberg: China Home-Price Drop Spreads as Easing Fails to Halt Downturn By Bloomberg News Oct 23, 2014 9:38 PM ET China’s new-home prices fell in all but one city monitored by the government last month as easings of property curbs failed to stem a market downturn amid tight credit. Prices dropped in 69 ...

Post Ebola News

Thursday, October 23rd, 2014

A New York City doctor has been diagnosed with Ebola. On that news S and P has cratered to -11.50 from +1 prior to the announcement. The bond market has rallied. The 5 year note is currently 1.464 versus 1.484 prior to the news. The 10 year note has rallied ...

Treasury Market Update

Thursday, October 23rd, 2014

The Treasury market continues to trade quite heavy and offered. The Treasury sold $7 billion 30 year TIPS and indirect bidders were awarded 64 percent of the issue with only 31 percent going to dealers. The issue came with a 2 basis point tail. The breakeven at auction time was ...

Tensions in Europe

Thursday, October 23rd, 2014

Via a fully paid up subscriber and Reuters: By Noah Barkin , Eva Taylor and Paul Taylor BERLIN/FRANKFURT/PARIS, Oct 23 (Reuters) - In early October, European Central Bank board member Benoit Coeure paid a discreet visit to the Chancellery in Berlin to express concerns about rising criticism of the bank from German politicians. The Frenchman, ...

Humongous

Thursday, October 23rd, 2014

I am not sure if I have ever seen that word in print before but a finance Professor uses it to describe an error in futures trading yesterday. Via Bloomberg: (BN) ‘Humongous’ Treasury Future Move Shows Trader Didn’t Do Hom ework +------------------------------------------------------------------------------+ ‘Humongous’ Treasury Future Move Shows Trader Didn’t Do Homework 2014-10-23 16:03:18.642 GMT By Matthew Leising ...