Archive for November, 2014

Hawk Speaks

Thursday, November 20th, 2014

*PLOSSER: MONETARY RULES SAY NO NEED TO KEEP FFR AT ZERO *PLOSSER: BIG BAL SHEET MEANS MORE IOER PAYMENTS, POLITCL PROBS *PLOSSER: SHOULD CEASE REINVESTMENT, START SHRINKING BAL SHEET *PLOSSER: HIGHER S-T INT RATES DISCRIMINATE VS SOME BORROWERS *PLOSSER: WILL HAVE TO HIKE FFR MORE TO OFFSET BAL SHT ACCOMDN **PHIL FED PLOSSER: KEEPING BIG ...

MBS

Thursday, November 20th, 2014

Mortgages are now wider on by by 1 tick to 1+ ticks. One trader commented that it feels as though there has been mortgage selling by those who are signing up for Alibaba.

Reverse Repo Alternative

Thursday, November 20th, 2014

Via Bloomberg: NY Fed’s Segregated Accounts Proposal Could Replace RRP, CA Says 2014-11-20 14:32:36.197 GMT By Alexandra Harris Nov. 20 (Bloomberg) -- Potential segregated accounts proposal mentioned in Oct. 28-29 FOMC minutes could be an alternative to the Fed’s O/N RRP facility, Credit Agricole strategist David Keeble said in phone interview. * Fed officials don’t like the reverse ...

MBS

Thursday, November 20th, 2014

Mortgages have opened in line with Treasuries his morning. The sector performed well yesterday post the minutes as participants believe that the minutes suggest a range trade with salutary results for those who hold MBS. Overseas demand had been robust the last few sessions but was modest last night. In terms ...

Corporate Bond Spreads

Thursday, November 20th, 2014

Here is an opening run of long dated bank and finance paper which is about a basis point tighter: 11/19 CLOSE    11/20 OPEN      CHANGE C  24      130/127        131/128          +1 WFC 24      106/103        107/104        ...

Irrationally Exuberant for Alibaba

Thursday, November 20th, 2014

Via Bloomberg: +------------------------------------------------------------------------------+ BFW 11/20 13:22 *BOOK SIZE FOR ALIBABA $BENCH 7-PART DEAL SAID TO BE $43B +------------------------------------------------------------------------------+ Book Size for Alibaba $Bench 7-Part Deal Said to Be $43b 2014-11-20 13:24:09.849 GMT By James Holloway Nov. 20 (Bloomberg) -- Information from person familiar with the matter, who is not authorized to speak publicly and asked not to be identified. * ...

Hilsenrath Article

Thursday, November 20th, 2014

Via Jon Hilsenrath and WSJ: HILSENRATH’S TAKE: FED STAFF WHISPERING CAUTION IN OFFICIALS’ EARS  While Federal Reserve officials sent a steady-as-she-goes message at their Oct. 28-29 policy meeting, the staff economists advising them were focused on downside risks to the economy. The staff nudged down its projection for growth in economic output over the medium term ...

What to Watch for Today

Thursday, November 20th, 2014

Via the good folks at Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Initial Jobless Claims, Nov. 15, est. 284k (prior 290k) * Continuing Claims, Nov. 8, est. 2.370m (prior 2.392m) * Continuing Claims, Nov. 8, est. 2.370m (prior 2.392m)</li></ul> * 8:30am: CPI m/m, Oct., est. -0.1% (prior 0.1%) * CPI Ex-Food and Energy ...

Bunds and Schatz into Year End

Thursday, November 20th, 2014

This is also via a fully paid up subscriber and it appears to be commentary from Commerzbank. The writer takes view the German fixed income market will suffer into year end as balance sheet availability may trump economic fundamentals. Via a fully paid up subscriber: Commerz Bunds: Schatz commentary. More weakness could ...

Goldman Sachs UK View

Thursday, November 20th, 2014

Via a fully paid up subscriber: UK VIEW: Goldman Sachs has pushed back its timing for a rise in BoE rate to Q4 2015 from Q1 2015 and, in line with its previous rate profile, expects a slow pace of tightening thereafter, to 2.75% by the end of 2018. "The forecast ...