Archive for November, 2014
Thursday, November 6th, 2014
The swaps market is very quiet but spreads are mixed today. Two year spreads are unchanged and 5 year spreads are 1/2 basis point wider. Ten year spreads are in 1/4 and 30 year spreads are in 1/2.
There are no noteworthy flows that anyone will tell me about today so ...
Posted in Uncategorized | Comments Off on Swap spreads
Thursday, November 6th, 2014
In my previous note I forgot to include the thought that there is a large deal planned by Walgreens (multi tranche multi currency as much as $10 billion) and that has probably also added to the pressure on the market.
Posted in Uncategorized | Comments Off on Addendum
Thursday, November 6th, 2014
The Treasury curve has steepened appreciably since I first wrote at 515AM. The 5s 30s spread has widened to 144.4 from 142.9 and 5s 10s has moved to 72.4 from 71.5.
One trader noted that Draghi stated nothing new and that motivated a sell off in long end of the Bund ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Thursday, November 6th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:30am: Challenger Job Cuts y/y, Oct. (prior -24.4%)
* 7:30am: RBC Consumer Outlook Index, Nov. (prior 53.2)
* 8:30am: Initial Jobless Claims, Nov. 1, est. 285k (prior
287k)
* Continuing Claims, Oct. 25, est. 2.363m (prior 2.384m)
* Continuing Claims, Oct. 25, est. 2.363m (prior 2.384m)</li></ul>
* ...
Posted in Uncategorized | Comments Off on What to Watch Today (Lots)
Thursday, November 6th, 2014
Via WSJ:
Nov. 6, 2014 6:35 a.m. ET
BEIJING—China’s central bank vowed to lower funding costs for corporate borrowers amid increasing pressure on the nation’s slowing economy.
In a report published Thursday on third-quarter monetary policy, the People’s Bank of China also confirmed it had already conducted two rounds of liquidity ...
Posted in Uncategorized | Comments Off on PBOC Steps on the Gas
Thursday, November 6th, 2014
Via Marc Chandler at Brown Brothers Harriman:
Dollar Mixed Ahead of the ECB
- The ECB meets today and is not expected to change policy; the BOE meeting should be a non-event
- The won-yen story is back after Vice Finance minister Hwan stated that authorities will manage the won’s move in line ...
Posted in Uncategorized | Comments Off on FX
Thursday, November 6th, 2014
Via Bloomberg:
Walgreen May Sell Debt in Multi-Currency, Multi-Tranche Deal
By James Holloway
Nov. 6 (Bloomberg) -- Walgreen (Baa2/BBB) may sell debt in multi-currency, multi-tranche deal via BofAML/DB/GS, according to a person familiar with the matter, who is not authorized to speak publicly and asked not to be identified.
Size could be as much ...
Posted in Uncategorized | Comments Off on Possible Large Corporate Deal
Thursday, November 6th, 2014
Stephen Stanley of Amherst Pierpont Securities wrote a lengthy piece on the election result and commented on what it means for the confirmation process of new Board of Governor choices. He believes that the confirmation process will be more difficult and Keynesian types and regulatory types will have tough sledding.
Via ...
Posted in Uncategorized | Comments Off on Election Result and the FOMC
Thursday, November 6th, 2014
Prices of Treasury coupon securities are registering very small mixed changes when measured against levels which prevailed at 745PM New York time last evening. There was quite a bit of economic data available for participants to review but the market remained in a narrow range as it awaits the Bank ...
Posted in Uncategorized | Comments Off on November 6 2014
Wednesday, November 5th, 2014
Via Merrill Lynch Research;
Earnings stay strong in 3Q. Earnings of US high grade companies remained strong in 3Q, defying earlier concerns that stronger dollar and weaker global growth would push earnings growth down sharply in the last quarter. We estimate earnings grew 6.0% on a year over year basis, while ...
Posted in Uncategorized | Comments Off on Eclectic Topics