Archive for November, 2014
Friday, November 21st, 2014
TIPS are " en fuego" today as central banks continue to debase their currencies. The dovish Draghi speech and the rate cuts in China have awakened sleeping commodities and slumbering TIPS buyers.
The auction yesterday went quite well with strong indirects and a diminished award to dealers. There has been follow ...
Posted in Uncategorized | Comments Off on TIPS
Friday, November 21st, 2014
Via Richard Gilhooly at TDSecurities:
The rate cut from China and another revamped speech from Draghi, with increased urgency to get inflation higher rapidly, have Break-evens significantly higher today, supported by a jump in commodity prices. The latter has bolstered commodity currencies, in addition to another strong core CPI print in ...
Posted in Uncategorized | Comments Off on Excellent Analysis
Friday, November 21st, 2014
The risk on rally is coursing its way through the corporate bond market,too. The IG 23 is 1 3/4 tighter at 64 64 1/2. Long dated financial paper is 2 basis points to 4 basis points tighter. Here is a run for your edification:
C 24 129/126 ...
Posted in Uncategorized | Comments Off on Corporates
Friday, November 21st, 2014
My friend and former colleague Steve Liddy whose musings I have chosen to intermittently reproduce here notes minutes ago that the 5 year forward inflation rate which the FOMC follows is at a cycle low. I hope the Bloomberg chart is readable and as always that is the fault of ...
Posted in Uncategorized | 2 Comments »
Friday, November 21st, 2014
Mortgages are opening pretty much in line with Treasuries. One dealer reports solid buying overnight on the back of real money buying and Federal Reserve buying yesterday.
The Draghi speech and the rate cut by China have fostered a risk on mentality today and that should benefit MBS in the days ...
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Friday, November 21st, 2014
Via the good folks at Bloomberg:
IG CREDIT: IG Dealer Positions in Short Issues at Series High
2014-11-21 11:24:07.747 GMT
By Robert Elson
Nov. 21 (Bloomberg) -- Dealer positions in corporate bonds
rose $800m to $33b as of Nov 12. $45.9b, seen March 5, was the
high for the series Fed began April 2013; $23b low ...
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Friday, November 21st, 2014
Via Bloomberg:
IG CREDIT: Highest Volume Thursday of 2014; MDT May Be Next Week
2014-11-21 10:46:15.610 GMT
By Robert Elson
Nov. 21 (Bloomberg) -- The final Trace count for secondary
trading was unchanged at $18.4b, the highest Thursday session of
the year; the previous Thursday session was $15.5b.
* 10-DMA $15.6b, ties the January high for 2014; ...
Posted in Uncategorized | Comments Off on Secondary market Corporate Bond Trading
Friday, November 21st, 2014
Via Marc Chandler at Brown Brothers Harriman:
- Official comments from Japanese and European officials have injected volatility into the foreign exchange market
- Also, SNB officials have reiterated their commitment to the defending the CHF1.20 level
- China surprised many today’s by announced a rate cut
- Protests are heating up the political ...
Posted in Uncategorized | Comments Off on FX
Friday, November 21st, 2014
Prices of Treasury coupon securities have registered modest losses in an overnight session marked by a dovish Draghi speech and then a surprise rate cut by the Peoples Bank of China. The losses in Treasuries have occurred since the announcement by China that it would lower rates. Equities have skyrocketed ...
Posted in Uncategorized | Comments Off on November 21 2014 Opening
Friday, November 21st, 2014
Via the FT:
EconomyChina cuts interest rates
9 minutes ago
In response to both a slowing domestic and global economy, the People's Bank of China, the country's central bank, has cut benchmark interest rates in the world's second-largest economy.
It has cut the one-year deposit rate by 25 basis points to 2.75 per cent ...
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