Archive for November, 2014

Greek Tragedy

Thursday, November 13th, 2014

Via WSJ: ATHENS—Greek financial markets slumped Wednesday, extending steep losses from a day earlier amid growing fears of renewed political instability and worries that the country may leave its bailout program before it is ready. As stocks fell elsewhere in Europe and in the U.S., the Athens Stock Exchange’s general index closed ...

Hilsenrath Article

Thursday, November 13th, 2014

Hilsenrath opines on China as "global wild card" on  decline in inflation. Via jon Hilsenrath at WSJ: HILSENRATH’S TAKE The U.S. and China have announced a slew of deals on the environment, security, trade and travel during President Obama’s travels east. Perhaps less noticed was news out earlier this week which paints a disturbing ...

Dudley on Inflation

Thursday, November 13th, 2014

Via Bloomberg: Dudley Says Market Overstates Drop in Inflation Expectations 2014-11-13 08:30:00.10 GMT By Matthew Boesler Nov. 13 (Bloomberg) -- Federal Reserve Bank of New York President William C. Dudley dismissed the drop in a market-based measure of inflation expectations and expressed optimism that a stronger economy would allow tightening to start in 2015. “Several of the various ...

Ten Year Result

Wednesday, November 12th, 2014

Via Ian Lyngen at CRT Capital: *** The auction was soft with a 0.3 bp tail and non-dealer bidding at 58.1% vs. 66% norm *** * 10-year auction stops at 2.365% vs. 2.362% 1-pm bid WI. * Dealers were awarded 42% vs. 34% average of last four 10-year Refundings. * Indirects get 44.7% vs. ...

Ten Year Auction Outlook

Wednesday, November 12th, 2014

Via Ian Lyngen at CRT Capital: Today at 10:27 AM We are cautious about the prospects of taking down the 10-year refunding at current levels and anticipate a more meaningful concession either ahead of 1pm or at the auction itself in the form of a modest tail.  All five of the most ...

New Issues

Wednesday, November 12th, 2014

Via Bloomberg: +------------------------------------------------------------------------------+ BFW 11/10 14:53 IG CREDIT: List of New Issues Expected to Price in U.S. Today BFW 11/07 14:59 IG CREDIT: List of New Issues Expected to Price in U.S. Today +------------------------------------------------------------------------------+ IG CREDIT: List of New Issues Expected to Price in U.S. Today 2014-11-12 14:55:05.503 GMT By James Holloway Nov. 12 (Bloomberg) -- The following ...

MBS

Wednesday, November 12th, 2014

Mortgages are 1+ to 2 ticks wider to Treasuries amidst very light activity. There was some foreign buying overnight and some light origination selling this morning. The Fed will be buying in a little less than an hour and one dealer thought the Fed purchase would (in his words) clean ...

Treasury Market Update

Wednesday, November 12th, 2014

The Treasury market continues well bid and yields are a tad lower than when I wrote at 530AM. In addition the curve is a tad steeper than it was back at that ungodly hour. I see 5s 30s at 144 now versus 143.1 earlier. The 10s 30s spread has steepened ...

Swap Spreads

Wednesday, November 12th, 2014

Two year swap spreads are 1/8 basis point tighter this morning and 5 year spreads are 1/4 tighter. Ten year spreads are 3/4 basis point tighter and 30 year spreads are 1/2 basis point tighter. One portfolio manager said dealers report central bank and foreign real money receivers overnight pushing spreads ...

JPM Duration Survey

Wednesday, November 12th, 2014

I do not have time to copy but the JPM survey has the largest number of active longs since January 2014.