Archive for October, 2014
Thursday, October 16th, 2014
Swap spreads are wider today. Two year, five year and 10 year spreads are out 2 basis points and thirty year spreads are out one basis point. Traders cite rate locking against future corporate bond issuance, generalized risk aversion and speculative clients paying in the belly.
Posted in Uncategorized | Comments Off on Swap Spreads
Thursday, October 16th, 2014
Via Millan Mulraine at TDSecurities:
Industrial sector output rebounded meaningfully in September, with production rising at a better than expected 1.0% m/m pace - marking the fastest monthly gain in this indicator since May 2010. The rise was well in excess of the market consensus for more modest 0.4% m/m advance, ...
Posted in Uncategorized | Comments Off on IP Analysis
Thursday, October 16th, 2014
It appears that some of the fear coursing through the market is receding. Stock markets in Italy and France have bounced off very ugly levels attained earlier. I watch 10 year Spain/US and Spain was + 31 to US at 515AM . That spread has narrowed to +22 a few ...
Posted in Uncategorized | Comments Off on Miscellany
Thursday, October 16th, 2014
Plosser wants to raise rates sooner rather than later and fears that the FOMC could fall behind the inflation curve. At the moment he is one of the few observers detecting inflation on the horizon.
Via a fully paid up subscriber:
DJ Fed's Plosser: Fed Should Raise Rates 'Sooner Rather Than Later' ...
Posted in Uncategorized | Comments Off on Plosser Channels Depression Era Fed
Thursday, October 16th, 2014
Long dated bank and finance paper is 4 basis points to 7 basis points weaker than yesterday's weak close.
The IG 23 is out 3 1/2 basis points.
The only quote I have seen on the $2 billion 5 year JPM deal which priced yesterday at + 100 is 104/99.
10/15 CLOSE ...
Posted in Uncategorized | Comments Off on Corporate Bond Opening:Weaker
Thursday, October 16th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Initial Jobless Claims, Oct. 11, est. 290k (prior
287k)
* Continuing Claims, Oct. 4, est. 2.380m (prior 2.381m)
* Continuing Claims, Oct. 4, est. 2.380m (prior 2.381m)</li></ul>
* 9:15am: Industrial Production, m/m, Sept., est. 0.4% (prior
-0.1%)
* Capacity Utilization, Sept., est. 79% (prior 78.8%)
* Manufacturing ...
Posted in Uncategorized | Comments Off on What to Watch Today
Thursday, October 16th, 2014
Via mark Chandler at Brown Brothers Harriman:
Global Markets Struggle to Stabilize
- The global markets are struggling to regain some semblance of stability
- We note that French bonds are not being dragged higher by the rally in bunds, but instead yields are up six basis points
- Oil prices continue to fall
- ...
Posted in Uncategorized | Comments Off on FX
Thursday, October 16th, 2014
Via Bloomberg:
IG CREDIT: Volume Higher; Spreads Move to 3Bps From 2014 Wides
2014-10-16 10:05:52.685 GMT
By Robert Elson
Oct. 16 (Bloomberg) -- The final Trace count for secondary
trading was $15.2b vs $12.2b Tuesday and $15b the previous
Wednesday. 10-DMA $14b; 10-DMA of only Wednesday sessions
$14.6b.
* 144a trading added another $2b of IG volume
* AMGN ...
Posted in Uncategorized | Comments Off on Secondary Market Trading of Corporates Yesterday
Thursday, October 16th, 2014
Prices of Treasury coupon securities are registering solid gains when viewed versus levels which prevailed at 822pm in New York. The market is once again extremely volatile and relationships are changing as I compose this electronic missive. So for context everything I write here is as of 532AM New York ...
Posted in Uncategorized | 1 Comment »
Thursday, October 16th, 2014
Short sterling is selling off and a friend across the pond blames fear of margin calls.
Via a fully paid up subscriber across the pond:
SHORT-STERLING: Front-end short-sterling contracts are trading lower and underperforming the back-end -- in line with eurodollar and euribor strip. Traders note" fear of margin calls" driving front-end ...
Posted in Uncategorized | Comments Off on Short Sterling Selling Off