Archive for October, 2014
Wednesday, October 8th, 2014
Via Marc Chandler ar Brown Brothers Harriman:
Will the FOMC Minutes end the Dollar's Correction?
- We are sympathetic to the risk of a hawkish read of the FOMC minutes, but do not believe that it reflects policy
- Although we played down the fundamentals driving the dollar's heavier tone so far this ...
Posted in Uncategorized | Comments Off on FX
Wednesday, October 8th, 2014
Prices of Treasury coupon securities sold off early in the overnight session but have since rebounded and are registering new cycle lows . The yield on the benchmark 5 year note has slipped to 1.615 from 1.643 at 1015PM last night. The last time that the 5 year note yield ...
Posted in Uncategorized | Comments Off on October 08 2014 Opening
Tuesday, October 7th, 2014
Bundesbank President Weidmann sat for an interiew with the WSJ and attacked the ECB plan to purchase bonds as well as the plaintive cries of France for fiscal flexibility. To quote the story he signaled no flexibility.
Via the WSJ:
ECONOMY
Bundesbank’s Weidmann Criticizes ECB’s Stimulus Measures
Weidmann Warns That ECB Policy Risks Being ...
Posted in Uncategorized | 1 Comment »
Tuesday, October 7th, 2014
Via Merrill Lynch Research:
October rates reversal. If September was all about rising interest rate risks (see Sep '14: Scared of the Treasury bear), October so far has been about undoing some of that. Following today's rates rally 10-year Treasury yields are now back to the lows from late August (while ...
Posted in Uncategorized | Comments Off on Eclectic Topics Via Merrill Lynch
Tuesday, October 7th, 2014
Thirty year bond (The Long Bond) just made a new low yield for the year as it breached 3.05 percent.
Posted in Uncategorized | Comments Off on Bond Benchmark
Tuesday, October 7th, 2014
Via a fully paid up subscriber:
-- Bloomberg Bullet Pts and Story --
*NEW YORK FED'S DUDLEY COMMENTS IN SPEECH IN TROY, NEW YORK
*DUDLEY CALLS FORECASTS FOR MID-2015 RATE RISE `REASONABLE VIEW'
*DUDLEY SAYS 2015 RATE INCREASE WOULD BE `VERY GOOD NEWS'
*DUDLEY STILL SEES `SIGNIFICANT UNDERUTILIZATION' IN JOB MARKET
*DUDLEY: INFLATION COULD MOVE UP ...
Posted in Uncategorized | Comments Off on Dudley Comments
Tuesday, October 7th, 2014
This guy is so dovish here that they should test his urine!
Via a fully paid up subscriber:
*FED'S KOCHERLAKOTA MAKES REMARKS AT SPEECH IN RAPID CITY
*KOCHERLAKOTA SAYS LABOR MARKET OUTCOMES `DISTRESSINGLY WEAK'
*KOCHERLAKOTA: FED HAS BEEN TOO TIGHT TO OFFSET CRISIS SHOCK
*KOCHERLAKOTA: DOESN'T SEE PCE INFLATION BACK AT 2% BEFORE 2018 *KOCHERLAKOTA ...
Posted in Uncategorized | Comments Off on Kocherlakota Comments
Tuesday, October 7th, 2014
The bond market rally today is ferocious and continues unabated.
I think the rally is the result of a perfect confluence of events which have now damaged bonus pools all over the trading world. The dealer community had turned extremely bearish following the DOTS presentation and while some of that bearishness ...
Posted in Uncategorized | 2 Comments »
Tuesday, October 7th, 2014
Via CRT Capital:
*** A solid takedown with a 0.4 bp through-stop and non-dealer bidding at 53% vs. 51% norm ***
* 3-year auction stops at 0.994% vs. a 0.998% 1-pm bid WI.
* Dealers were awarded 47% vs. 49% average of the last four 3-year auctions.
* Indirects get 35.5% vs. 33% norm.
* ...
Posted in Uncategorized | Comments Off on Three Year Result
Tuesday, October 7th, 2014
Via Richard Gilhooly of TDSecurities:
As we head into the 3yr note auction the Treasury market is extending its rally, even as Bunds closed unchanged after the weakest IP data since 2009. The 10yr spread is now at 147bp over Bunds and 30yr Treasury yields have broken below the October 1st ...
Posted in Uncategorized | Comments Off on Superb Analysis