Archive for October, 2014
Thursday, October 16th, 2014
I just sat down at my work station here at acrossthecurve.com's global headquarters to check the market and I found this Blooomberg story which is about 20 minutes old. Bloomberg reports that the yield on Greek 10 year bonds has jumped 75 basis points overnight. Yields on Italian and Spanish ...
Posted in Uncategorized | Comments Off on Greek Tragedy
Wednesday, October 15th, 2014
Hilsenrath discusses the persistence of deflationary pressures globally six years after the financial crisis. It is not his usual Fed story.
Via Jon Hilsenrath at the WSJ:
ECONOMY
Risk of Deflation Feeds Global Fears
Falling Commodities Prices Pressures Central Bank
By
JON HILSENRATH and
BRIAN BLACKSTONE
CONNECT
Oct. 15, 2014 8:26 p.m. ET
Behind the spate of market turmoil lurks ...
Posted in Uncategorized | Comments Off on Hilsenrath on Global Deflationary Pressures
Wednesday, October 15th, 2014
The FT recounts the travails of hedge funds who have sen bets on oil, bonds and equities go awry.
Via the FT:
October 15, 2014 11:43 pm
Hedge funds face their worst year since 2011
Stephen Foley in New YorkAuthor alert
Hedge funds are on course for their worst year since 2011, as several of ...
Posted in Uncategorized | Comments Off on Hedge Fund Trouble
Wednesday, October 15th, 2014
Via Merrill Lynch Research:
Notes from the roller coaster. Explaining today's roller coaster move in the markets from a fundamental point of view is next to impossible. However, clearly the week US retail sales numbers for September provided fuel to the fire in terms of speculation that global economic weakness spills ...
Posted in Uncategorized | Comments Off on Eclectic Topics Via Merrill Lynch
Wednesday, October 15th, 2014
This is a sleeper story so far which has the potential to cause some turmoil in Europe as France and Italy challenge the Germans on austerity.
Via the WSJ:
Italy Joins France on Potential Collision Course With Europe Over Budgets
Renzi Plans Tax Cuts to Try to Jump-Start Economy, Delaying Deficit Reduction
By
GIADA ZAMPANO ...
Posted in Uncategorized | Comments Off on Whither the Euro
Wednesday, October 15th, 2014
Via a fully paid up subscriber and Bloomberg News:
*YELLEN SAID TO VOICE CONFIDENCE IN EXPANSION AMID FOREIGN RISKS
*YELLEN SAID TO SPEAK IN PRIVATE MEETING LAST WEEKEND
Yellen Said to Voice Confidence in Expansion Amid Foreign Risks
By Rich Miller
Oct. 15 (Bloomberg) -- Federal Reserve Chair Janet Yellen
voiced confidence in the durability of ...
Posted in Uncategorized | Comments Off on Captain of the Titanic Was Confident, Too
Wednesday, October 15th, 2014
Someone just sent me this late in the day run of bank and finance paper. It is appreciable wider from levels which prevailed this morning. Most of this paper was 2 basis points to 3 basis points wider at the open so tack on that much to the far right ...
Posted in Uncategorized | Comments Off on More Corporate Bonds
Wednesday, October 15th, 2014
Corporate Bonds are 3 basis points to 4 basis points wider today. One salesman reported a reasonable chunk of bid lists loaded with belly paper. Many of those lists did not trade.
JPMorgan priced $2 billion of a 5 year at T +100. If there were total disarray and disorder that ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Wednesday, October 15th, 2014
Via Eric Green at TDSecurities:
The last time the Treasury market had an intraday move approaching the one today (36bps in 10s) was on August 9th 2011 after S&P downgraded US debt. The second to largest move since today was on September 18th 2013. On that day the Fed failed to ...
Posted in Uncategorized | Comments Off on Today’s Move, the FOMC and Fed Policy
Wednesday, October 15th, 2014
Five year TIPS breakevens are about 10 basis points lower today and that would put them in the high 140s. ten year TIPS are 7 basis points lower at 184 and 30 year TIPS are 6 lower at 201.
Posted in Uncategorized | Comments Off on Rout Continues in TIPS