Archive for November, 2014
Tuesday, November 18th, 2014
Mortgages are sitting either side of flat at the moment. Several factors have combined to cap gains. Origination flows today have been robust. Money managers have been sellers of specified pools. Fast money types have taken profits on gains achieved in the recent MBS outperformance.
One dealer noted that he wants ...
Posted in Uncategorized | Comments Off on MBS
Tuesday, November 18th, 2014
The Treasury market continues its somnolent and soporific existence today. One market maker noted that volume was running 55 percent to 60 percent of normal. Some of that lassitude results from the calendar and the imminent year end. Traders are in protect your scarce asset mode and will not being ...
Posted in Uncategorized | 1 Comment »
Tuesday, November 18th, 2014
If Kocherlakota were a client and I were still hawking bonds for a living if I had heard this bullish peroration on the phone I would have immediately asked him how many 10 year notes he wanted me to offer him. He thinks that it will be inappropriate to hike ...
Posted in Uncategorized | Comments Off on How Many 10 year notes do you need?
Tuesday, November 18th, 2014
This is another guest post from my friend Steve Liddy. He discusses the next zone of resistance for the S and P (which he sees up against a trend line at 2051). He attaches some Bloomberg charts which do not translate well to my low budget blog so the blame ...
Posted in Uncategorized | 2 Comments »
Tuesday, November 18th, 2014
MBS spreads are 1 to 1+ tighter to Treasuries today. There was chunky originator selling yesterday and again this morning. The offset to that is a Fed purchase of $1.8 billion later this morning.
Mortgages are well bid and at the tightest spreads of the year end user money is still ...
Posted in Uncategorized | 1 Comment »
Tuesday, November 18th, 2014
Swap spreads are mostly tighter today. Two year spreads are 1/4 basis point tighter. Five year spreads are also 1/4 tighter. Ten year spreads are unchanged and thirty year spreads are in 1/4.
One portfolio manager looks for wider spreads, He thinks that most financial issuance is done for the year ...
Posted in Uncategorized | Comments Off on Swaps
Tuesday, November 18th, 2014
Via Bloomberg;
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2014-11-18 14:50:45.682 GMT
By Greg Chang
Nov. 18 (Bloomberg) -- The following is a list of new
issues expected to price today:
* World Bank $benchmark Aaa/AAA
* 10Y Global
* Spread set MS+8 vs Guidance MS+9 area vs IPT MS+9 area
* Books: BNP, ...
Posted in Uncategorized | Comments Off on Corporate Bond Issuance
Tuesday, November 18th, 2014
This piece is by Goldman Sachs and a fully paid up subscriber forwarded it to me:
Via Goldman Sachs:
From Goldman:
Conversations we are having with clients: Denial, anger, and acceptance of lower oil price
Denial, anger, and acceptance are three psychological stages of grief.
We visited portfolio managers in Texas this week and conversations ...
Posted in Uncategorized | Comments Off on Oil , the Economy and Equities
Tuesday, November 18th, 2014
Via Stephen Stanley at Amherst Pierpont Securities:
Today at 9:06 AM
The October PPI report is a perfect example of why this release should be ignored. The headlines were stunning: a 0.2% rise in the headline figure (in a month when energy costs were plunging) and a 0.4% jump in ...
Posted in Uncategorized | Comments Off on PPI/CPI Analysis
Tuesday, November 18th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: PPI Final Demand m/m, Oct., est. -0.1% (prior -0.1%)
* PPI Ex-Food and Energy m/m, Oct., est. 0.1% (prior 0.0%)
* PPI Final Demand y/y, Oct., est. 1.3% (prior 1.6%)
* PPI Ex-Food and Energy y/y, Oct., est. 1.5% (prior 1.6%)
* PPI Ex-Food ...
Posted in Uncategorized | Comments Off on What to Watch for Today