Archive for October, 2014
Tuesday, October 7th, 2014
One other dealer reports overseas clients are better sellers of off the run 2s and 3s today. I would expect that money to flow into the new 3 year note.
In addition there is solid interest in the WI 3 year note at + 50 to the 2 year note. It ...
Posted in Uncategorized | Comments Off on More Treasury Flows
Tuesday, October 7th, 2014
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-10-06 13:46:28.59 GMT
By Greg Chang
Oct. 6 (Bloomberg) -- The following is a list of new issues
expected to price today.
* Republic of Kazakhstan $benchmark Baa2/BBB+
* 10Y & 30Y, 144A/Reg S
* IPT 10Y MS+175 area, 30Y MS+230 area
* Books: C, ...
Posted in Uncategorized | Comments Off on Corporate issuance
Tuesday, October 7th, 2014
In the Treasury market one dealer reported an end user selling a large tranche of Bonds against the 3.10 level. The same dealer also reported extensive buying in 5s and 10s by an eclectic group of participants.
I spoke to another trader with a strong presence in the short end of ...
Posted in Uncategorized | Comments Off on Flow
Tuesday, October 7th, 2014
In the Treasury market update I posted earlier I referred to some heat that the BOJ was taking as some questioned the efficacy of QE. Here is the WSJ story which precipitated the comment:
Via the WSJ:
(WSW) WSJ [Reg]: Grand Central: BOJ’s Kuroda, Facing New Heat, T
empers Outlook, Maintains Policy — ...
Posted in Uncategorized | Comments Off on BOJ Takes Flak
Tuesday, October 7th, 2014
Via a fully paid up subscriber:
{EU} The market is clearly hunting EUR shorts over the past 24hrs and this has cleaned out the order book. We suspect there will be sellers on rallies up into 1.2680-1.2700 and have limited bids into 1.2550 but think there will be more into 1.2540-30 ...
Posted in Uncategorized | Comments Off on FX Thoughts
Tuesday, October 7th, 2014
Swap spreads are 1/2 basis point wider across the curve. There is a risk odd trade coursing through the market and that has kept spreads bid. There is also a dearth of swappable issuance and that has removed that impulse for tighter spreads.
One portfolio manager noted that he continues to ...
Posted in Uncategorized | Comments Off on Swap Spreads
Tuesday, October 7th, 2014
The bond market is in the midst of a powerful rally and the 10 year note has once again cracked the 2.40 level (currently 2.38). There are several reasons for the rally. The catalyst was the precipitous decline in German IP reported overnight which has hyped fears of a recession ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Tuesday, October 7th, 2014
Via FT:
October 7, 2014 8:54 am
Plunge in industrial production stokes German recession fears
By Stefan Wagstyl in Berlin and Jamie Chisholm in LondonAuthor alerts
German industrial output suffered its biggest monthly decline in more than five years in August, raising fears that Europe’s biggest economy might be heading for recession and prompting ...
Posted in Uncategorized | Comments Off on Recession Fears in Germany
Tuesday, October 7th, 2014
Long dated financial paper opening about 1 basis point wider to Treasuries. The IG 23 is 1 1/2 wider at 68 3/4 to 69 1/4.
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, October 7th, 2014
With apologies for the late delivery and via Bloomberg (my fault not there fault):
RATES: Lowest Number of Shorts Since May, JPM Survey Says
2014-10-07 11:10:03.726 GMT
By Robert Elson
Oct. 7 (Bloomberg) -- The JPMorgan Treasury Client Survey
for the week ended Oct 6 vs week ended Sept 29.
* Longs 16 vs 17
* Neutrals ...
Posted in Uncategorized | Comments Off on JPM Duration Survey