Archive for October, 2014

Two Year Note Auction

Tuesday, October 28th, 2014

Via Ian Lyngen at CRT Capital: The 2-year sector is modestly lower this morning, pricing in a slight outright concession but it is holding well compared to the rest of the curve. Nonetheless, we’re constructive on this afternoon’s auction as it’s tied with Jul-Sep as the smallest 2-year size since March ...

Corporate Bond Spreads

Tuesday, October 28th, 2014

Long Dated bank and finance paper is opening 1/2 to 1 basis point tighter this morning. The IG 23 is opening 1/2 tighter at 64 1/4 to 64 3/4. The new 5 year Proctor and Gamble deal which priced yesterday at + 45 is 42/41 this morning.  

Durable Goods Orders

Tuesday, October 28th, 2014

Via jay Morelock at FTN Financial Durable goods orders fell 1.3% in September, far below the +0.5% consensus estimate.  August was revised slightly from -18.2% to -18.3%.  Durables ex-transportation fell 0.2%.  Nondefense capital goods orders ex-aircraft unexpectedly fell 1.7% and was revised from 0.6% to 0.3% in August. Nondefense capital goods shipments ...

MBS

Tuesday, October 28th, 2014

MBS opening firm today after finishing yesterday 2 ticks better to Treasuries across the curve. This morning the stack is a + to 1 tick better. There was a smattering of overseas buying in the product and coupled with light origination and Federal Reserve purchases there are not enough bonds ...

JPM Duration Survey

Tuesday, October 28th, 2014

All Clients          Long                Neutral                   Short Oct 27                  13                      67                            20 Oct 20                  13                       65                           22 Oct 14                   20                       54                         26 Active Clients Oct 27                  17                     67                            17 Oct 20                  8                     75                             17 Oct 14                   17                      58                          25   In the all clients survey, the percent of longs was unchanged, the percent of neutrals increased by 2, and the percent ...

What to Watch Today

Tuesday, October 28th, 2014

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Durable Goods Orders, Sept., est. 0.5% (prior -18.2%, revised -18.4%) * Durables Ex-Transportation, Sept., est. 0.5% (prior 0.7%, revised 0.4%) * Capital Goods Shipments Non-Defense Ex-Aircraft, Sept., est. 0.7% (prior 0.1%) * Capital Goods Orders Non-Defense Ex-Aircraft, Sept., est. 0.7% (prior 0.6%, revised 0.4%) * Capital Goods Orders ...

Ruble Rubble Redux

Tuesday, October 28th, 2014

The Russian Ruble makes a new low each day. Here is a Bloomberg story on the topic. Via Bloomberg" Ruble Weakens to Record on Concern Russia to Expedite Free Float By Vladimir Kuznetsov Oct 28, 2014 6:00 AM ET The ruble weakened to a record for the fifth day on concern Russia will quicken ...

FX

Tuesday, October 28th, 2014

Via Marc Chandler at Brown Brothers Harriman: - Sweden’s Riksbank cut rates by more than expected - Japanese retail sales surprise on the upside - The ECB meets next week, but this week is all about fiscal policy in the Eurozone - The Hungarian central bank meets and is expected to keep rates steady ...

Secondary Market Trading of Corporates Yesterday

Tuesday, October 28th, 2014

Via Bloomberg: IG CREDIT: AAPL 2021 Led Trading; HUWHY, GLBACO Set to Price 2014-10-28 09:49:07.112 GMT By Robert Elson Oct. 28 (Bloomberg) -- The final Trace count for secondary trading was $11.2b vs $11.4b Friday and $12.8b the previous Monday. 10-DMA at $14.5b; 10-DMA of only Monday sessions $11.3b. * 144a trading added another $2.1b of IG ...

October 28 2014 Opening

Tuesday, October 28th, 2014

Prices of Treasury coupon securities have registered modest gains in overnight trading in a session dominated by participants waiting for the FOMC decision. Stocks in China posted robust gains on better than expected rebound in industrial profits. In Japan retail sales were better than expected but the Nikkei declined marginally. ...