Archive for October, 2014

End Of Day Analysis

Wednesday, October 8th, 2014

Via Richard Gilhooly at TDSecurities: Intermediates led a powerful rally and steepened the curve significantly today as the market re-assessed the FOMC message from September 17. Instead of being the Hawkish rant and harbinger of aggressive rate hikes, it turns out the meeting was a similarly Dovish affair that in fact ...

Hilsenrath Story

Wednesday, October 8th, 2014

This is a story which was out earlier while I was enjoying lunch in Manhattan. Hilsenrath writes that FOMC solons have apprehensions about the weak pace of growth overseas and the strength of the dollar. Via the WSJ and Jon Hilsenrath: Fed Officials More Concerned About Overseas Growth, Strong Dollar Fed Minutes Point ...

Economics of Ebola

Wednesday, October 8th, 2014

The World Bank has published a study which gauges the economic costs of the Ebola outbreak over the next two years. It pegs the cost in a worst case scenario at about $32 billion. Via TheHill.com: By Sarah Ferris - 10/08/14 10:57 AM EDT The economic impact of the deadly Ebola outbreak in ...

Ten Year Auction

Wednesday, October 8th, 2014

Via Ian Lyngen of CRT Capital: We are cautious about the prospects of taking down the 10-year reopening auction at the bottom of the yield range and anticipate a more meaningful concession either ahead of 1pm or at the auction itself in the form of a modest tail.  The proximity to ...

Swap Spreads

Wednesday, October 8th, 2014

Swap spreads are tighter across the curve today. Two year spreads ar in 1/2 basis point and 5 year spreads are in 1/4 basis points. Ten year spreads are in 1 basis point and 30 year spreads have tightened 5/8 basis point. There was some chunky issuance in the 10 year ...

Market Musings and Miscellany

Wednesday, October 8th, 2014

The Treasury yield curve is steepening as well it should with Jack Lew and his subalterns about to drop some duration in the long end with an auction today of 10s and an auction tomorrow of 30s. The 5s 30s spread is 143.9 currently after opening early this morning at ...

Corporate Bonds

Wednesday, October 8th, 2014

Long dated bank and finance paper opening 1 tighter today. The IG 23 opening 3/4 tighter at 68 3/4 to 69 1/4.

What to Watch Today

Wednesday, October 8th, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 7:00am: MBA Mortgage Applications, Oct. 3 (prior -0.2%) Central Banks * 8:00am: Fed’s Evans speaks in Wisconsin * 2:00pm: Fed releases minutes from Sept. 16-17 FOMC meeting Supply * 1:00pm: U.S. to sell $21b 10Y notes in reopening

Regarding IOER

Wednesday, October 8th, 2014

Via Bloomberg: NY Fed’s Potter Says IOER Rate to Pull Short-Term Rates Higher 2014-10-07 21:19:45.953 GMT By Alexandra Harris Oct. 7 (Bloomberg) -- NY Fed’s Simon Potter said interest on excess reserves (IOER) rate may act as a “magnet,” eventually pulling fed funds and other short-term rates toward the 25bp rate, contrary to Barclays strategist Joseph Abate, ...

Secondary Market Trading in Corporates

Wednesday, October 8th, 2014

Via Bloomberg: IG CREDIT: Volume 10-DMA Highest Since March; Q, EIB to Price 2014-10-08 10:04:15.859 GMT By Robert Elson Oct. 8 (Bloomberg) -- The final Trace count for secondary trading was $16.2b vs $13.1b Monday and $16.7b the previous Tuesday. 10-DMA $14.95b, the highest level since $14.97 was seen March 11; $15.6b was the high for 2014 ...