Archive for November, 2014
Monday, November 10th, 2014
Via Ian Lyngen at CRT Capital *** A solid takedown with a 0.1 bp through-stop and non-dealer bidding at 52.9% vs. 53% norm ***
* 3-year auction stops at 0.998% vs. a 0.999% 1-pm bid WI.
* Dealers were awarded 47.1% vs. 47% average of the last four 3-year auctions.
* Indirects get ...
Posted in Uncategorized | Comments Off on Three Year Auction Nitty Gritty
Monday, November 10th, 2014
Bloomberg has posted an article which cites work from the San Francisco Federal Reserve which concludes that slower growth does not necessarily mean that the longer term short term rate is necessarily lower.
Via Bloomberg:
SF Fed: Rates May Rise More Than Many on FOMC Expect
2014-11-10 18:00:00.1 GMT
By Vivien Lou Chen
Nov. 10 ...
Posted in Uncategorized | Comments Off on Slower Growth Path and Short Term Rates
Monday, November 10th, 2014
Via Ian Lyngen at CRT Capital
We are optimistic about this afternoon’s $26 bn 3-year auction and see the risk of a stop-through in light of the recent performance of new 3s, smaller auction size, and the large amount of offsetting maturities providing investable cash in the front-end of the market. ...
Posted in Uncategorized | Comments Off on Three Year Note Auction
Monday, November 10th, 2014
The Treasury market has a less than festive tone about it today. The Friday rally squeezed out lots of street and near street shorts and that has made today a trick trade.
There is a 3 year note to bid on at 100PM and that issue is reclaiming some of the ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Monday, November 10th, 2014
Swap spreads are tighter by about 1/4 basis point across the curve today. One market maker noted that fast money types are poised to pay spreads at current levels. He said that the 5 year spread which is currently 14 1/2 bottomed last week and fast money wants to pay ...
Posted in Uncategorized | Comments Off on Swap Spreads
Monday, November 10th, 2014
The new issue calendar is fairly heavy today. Most participants thought that with the holiday tomorrow issuance would be very light today. Here is the early list compiled by the good folks at Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-11-10 14:53:18.582 GMT
By James Holloway
Nov. 10 ...
Posted in Uncategorized | Comments Off on New Issue Calendar
Monday, November 10th, 2014
MBS spreads are a + wider this morning in very quiet trading. One dealer noted that with the holiday tomorrow and the shuttering of the market originators might be a tad more active selling today. He thought that the opportunity for significant under performance by MBS this week is limited ...
Posted in Uncategorized | Comments Off on MBS
Monday, November 10th, 2014
Corporate bond spreads in the cash market are opening unchanged this morning in very light trading. The IG 23 is 3/8 tighter at 65.
I have only seen one new deal thus far and that is a six tranche deal from oil giant Chevron. I have not seen a size or ...
Posted in Uncategorized | Comments Off on Corporate Bonds Spreads
Monday, November 10th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 10:00am: Fed Labor Mkt Conditions Index, Oct.
Central Banks
* 5:10pm: Fed’s Rosengren speaks at Washington and Lee
University, Lexington, Va.
Supply
* 11:00am: U.S. to announce plans for auction of 4W bills
* 11:30am: U.S. to sell $24b 3M bills, $28b 6M bills
* 1:00pm: U.S. to ...
Posted in Uncategorized | Comments Off on What to Watch Today
Monday, November 10th, 2014
This is an interesting (to me ) piece from Merrill Lynch research on retail sales.
Bank America Merrill Lynch client base covers a rather wide swath of the American consuming public and those good folks use credit cards and debit cards. Bank America tracks that spending and releases the results. Employing ...
Posted in Uncategorized | Comments Off on Merrill Lynch on Retail Sales