Archive for October, 2014
Thursday, October 23rd, 2014
I just received an email from another market maker with thoughts on the 30 year TIPS auction. He thinks that the auction is likely to produce a small tail but clients are most comfortable with the 30 year sector. He noted that if someone needed a big chunk the auction ...
Posted in Uncategorized | Comments Off on More on TIPS Auction
Thursday, October 23rd, 2014
The Treasury will sell $7billion 30 year TIPS today at 100PM. The consensus is that the issue is cheap and that it will attract interest from investors with a long term horizon. The breakeven is just above 200 basis points and many long term investors believe that as an entry ...
Posted in Uncategorized | Comments Off on Miscellany
Thursday, October 23rd, 2014
Via Bloomberg:
IG CREDIT: Seven to Price as Week Approaches $30b for 15th Time
2014-10-23 14:15:02.461 GMT
By Lisa Loray
Oct. 23 (Bloomberg) -- Seven issuers are expected to price
transactions today after eight priced $13.025b yesterday, the
most active session in one month. Weekly volume to approach
$30b for the 15th time in 2014; Oct. nears ...
Posted in Uncategorized | Comments Off on Corporate Issuance
Thursday, October 23rd, 2014
Corporate bond spreads are unchanged today. The VZ deal which priced yesterday is a tad on the heavy side. For the uninformed (and I blogged little yesterday and did not report this) VZ sold $1.5 billion 7 year notes at +115, $2.5 billion 10 year notes at +135 and $2.5 ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Thursday, October 23rd, 2014
Swaps spreads are essentially unchanged today in 2s 5s 10s and 30s. From the widest levels attained last week in the Treasury market short squeeze spreads are about 2.5 basis points tighter. One market maker with whom I conversed thinks that the resting position is now long spreads. He thinks ...
Posted in Uncategorized | Comments Off on Swap Spreads
Thursday, October 23rd, 2014
Via Bloomberg;
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Chicago Fed National Activity Index, Sept., est.
0.15 (prior -0.21)
* 8:30am: Initial Jobless Claims, Oct. 18, est. 281k (prior
264k)
* Continuing Claims, Oct. 11, est. 2.380m (prior 2.389m)
* 9:00am: FHFA House Price Index m/m, Aug., est. 0.3%
(prior 0.1%)
* 9:00am: FHFA House Price ...
Posted in Uncategorized | Comments Off on What to Watch Today
Thursday, October 23rd, 2014
Via Barron's:
Getting Technical
Stocks’ Recent Rally May Not Last
All the sectors that are keys to market health are lagging, including retail, technology, home building, banks and small-caps. Caveat emptor.
By
Michael Kahn
Oct. 22, 2014 5:23 p.m. ET
Canadian singer Bryan Adams sang in a 1983 release, “It cuts like a knife, but it feels ...
Posted in Uncategorized | Comments Off on Bear Market Rally?
Thursday, October 23rd, 2014
Via Marc Chandler at Brown Brothers Harriman:
Divergent Data Drives Currency Markets
- Stronger euro-area PMI and hawkish ECB comments helped lift the euro
- The UK reported weaker than expected data
- Lower than expected New Zealand Q3 CPI data overnight prompted a small selloff in the kiwi
- HSBC reported its October ...
Posted in Uncategorized | Comments Off on FX
Thursday, October 23rd, 2014
Via Bloomberg:
IG CREDIT: Volume Remains High; DAIL, ISCTR Set to Price
2014-10-23 10:01:43.717 GMT
By Robert Elson
Oct. 23 (Bloomberg) -- The final Trace count for secondary
trading was $17.6b vs $17.9b Tuesday, the highest since $18.1b
April 23. and $15.2b the previous Wednesday.
* 10-DMA $14.4b; 10-DMA of only Wednesday sessions $14.6b.
* 144a trading added ...
Posted in Uncategorized | Comments Off on Secondary Market Corporate Bond Trading Yesterday
Thursday, October 23rd, 2014
Via WSJ:
Business
Clouds Darken for America’s Blue-Chip Stocks
Coke, IBM, Others Find Once-Reliable Formulas Leave Them Too Big to Change Direction Quickly
By
Theo Francis,
Mike Esterl and
Joann S. Lublin
Oct. 22, 2014 7:33 p.m. ET
The approach was time-tested and hard to beat: Put your money in blue chips, decades-old companies that could be ...
Posted in Uncategorized | Comments Off on Tough Times for Some Revered Blue Chips