Archive for October, 2014
Thursday, October 23rd, 2014
I wrote my opening post so early that I had not received much on client flows.
Dealers report central banks nibbling on 2s through 5s as those sectors dip in price. Fast money has sold the 10 year sector.
Real money has sold one year through three year spread product.
Posted in Uncategorized | Comments Off on Overnight Flows
Thursday, October 23rd, 2014
Last week I cut and pasted this WSJ feature story on Austin Texas based asset manager Hoisington Asset Management. The firm has been and remains extremely bullish on US Treasuries. The principals at the firm believe that the world is drowning in a sea of debt and a sustained bout ...
Posted in Uncategorized | Comments Off on Hoisington Asset Management
Thursday, October 23rd, 2014
Prices of Treasury coupon securities have sagged when viewed against levels which prevailed at the close of New York trading. The headline data released overnight was risk friendly and has motivated a sharp rise in US equity futures with S and P gaining about 12 points as of this writing ...
Posted in Uncategorized | Comments Off on October 23 2014 Opening
Thursday, October 23rd, 2014
Via Merrill Lynch:
Rates, supply weaken bond technicals. As illustrated by the widening in Telecom sector spreads today on the back of the VZ deal, actual and expected supply is weighing on cash bond spreads. That, combined with a sharp fall in interest rates has resulted in significant underperformance of cash ...
Posted in Uncategorized | Comments Off on Eclectic Topics from Merrill Lynch Research
Wednesday, October 22nd, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:00am: MBA Mortgage Applications, Oct. 17 (prior 5.6%)
* 8:30am: CPI m/m, Sept., est. 0.0% (prior -0.2%)
* CPI y/y, Sept., est. 1.6% (prior 1.7%)
* CPI Index NSA, Sept., est. 238.030 (prior 237.852)
* CPI Ex-Food and Energy m/m, Sept., est. 0.1% (prior
0.0%)
* CPI ...
Posted in Uncategorized | Comments Off on What to Watch Today
Wednesday, October 22nd, 2014
Via Marc Chandler at Brown Brothers Harriman:
- ECB’s Coene played down some of the excitement on corporate bond-buying, though he did acknowledge that the topic was on the table
- The European Commission looks set to take a stronger stance on the EU budget rule, applying pressure on France and Italy
- ...
Posted in Uncategorized | Comments Off on FX
Wednesday, October 22nd, 2014
Via a fully paid up subscriber:
RBS on MPC Mins: Halt in hawkish drift
RBS see a halt in previous 'hawkish drift' within the MPC, with a lower
likelihood of the majority shifting to a more hawkish direction (especially
given the MPC had seen the 1.2% Sept CPI reading). They believe the majority 7
are ...
Posted in Uncategorized | Comments Off on RBSon Bank of England Minutes
Wednesday, October 22nd, 2014
Via Bloomberg:
IG CREDIT: Highest Volume Since April; MQGAU, FMSWER to Price
2014-10-22 09:58:58.389 GMT
By Robert Elson
Oct. 22 (Bloomberg) -- The final Trace count for secondary
trading was $17.9b vs $12.8b Monday and $12.2b the previous
Tuesday. Tuesday’s volume was highest since $18.1b April 23;
$19.5b, the high for 2014, was seen Jan 15.
* 10-DMA ...
Posted in Uncategorized | Comments Off on Secondary market Corporate Bond Trading Yesterday
Wednesday, October 22nd, 2014
Prices of Treasury coupon securities have registered modest gains in a relatively lackluster trading session. Today is the one week anniversary of the Great Bond Market Catharsis when the last recalcitrant shorts surrendered to the 2014 price action. The volatility that day was dizzying but it was short lived as ...
Posted in Uncategorized | Comments Off on October 22 2014 Opening
Tuesday, October 21st, 2014
Via Merrill Lynch:
Out the curve, into US credit. Credit spreads in Europe rallied today on speculation in a Reuters article that the ECB could buy corporate bonds in the secondary market. While such development appears underwhelming as means to expand the ECBs balance sheet and create inflation, not surprisingly iTraxx ...
Posted in Uncategorized | Comments Off on Eclectic stuff from Merrill Lynch Research