Archive for December, 2014
Saturday, December 27th, 2014
In Japan Prime Minister Abe has announced a $29 billion stimulus package which will focus on small businesses, rural areas and disaster reconstruction. This is his firs major policy initiative since voters accorded him a mandate in an election earlier this month.
Via the WSJ:
Japan Prime Minister Shinzo Abe Approves $29 ...
Posted in Uncategorized | Comments Off on Pump Priming in Tokyo
Saturday, December 27th, 2014
Merrill Lynch in its daily research note reports that the recent surge in interest rates at the front end of the fixed income market has prompted record redemptions from short term high grade funds.
Via Merrill Lynch Research:
Outflows from short-term high grade funds accelerated to $1.48 last week, following two $1bn ...
Posted in Uncategorized | Comments Off on Short Term Funds See Withdrawals
Friday, December 26th, 2014
Via the WSJ:
Japan Inflation Slows in Blow to Abe
By
Tatsuo Ito And
Kosaku Narioka
Updated Dec. 25, 2014 7:56 p.m. ET
TOKYO—Japan’s inflation rate fell to its lowest level in over a year in November as the economy struggles to emerge from a recession, in a fresh setback to Prime Minister Shinzo ...
Posted in Uncategorized | Comments Off on Low Inflation in Japan
Friday, December 26th, 2014
Via Brown Brothers Harriman:
Boxing Day Edition
Foreign Exchange: In thin trading conditions, the major currencies are little changed. The euro is straddling the $1.22 area. It has held above the low seen earlier this week near $1.2165. Since the low was seen, the reaction high has been limited to the ...
Posted in Uncategorized | Comments Off on FX
Thursday, December 25th, 2014
Via the FT:
China News
China to Ease Rules to Boost Lending
China’s Central Bank to Relax Calculation of Banks’ Loan-to-Deposit Ratio
By
Lingling Wei
Updated Dec. 25, 2014 8:08 a.m. ET
BEIJING—China’s central bank is allowing banks to lend more out of their deposits as the world’s second-largest economy struggles to gain momentum, according ...
Posted in Uncategorized | 2 Comments »
Wednesday, December 24th, 2014
Via CRT Capital:
We are apprehensive about the prospects for this morning's 7-year supply. The recent string of auction tails for 7s have us looking for a repeat performance today, if for no other reason than the holiday inspired low liquidity will present a challenge for drawing in bidding interest. Combined ...
Posted in Uncategorized | Comments Off on Seven Year Note Auction
Wednesday, December 24th, 2014
Via Boomberg;
Corporate Bond Spreads Tend to Tighten in January: BI
2014-12-24 13:26:03.970 GMT
By James Holloway
(Bloomberg) -- January is often favorable for corporate
bond markets as fund managers deploy cash from investment
mandates awarded at year-end, BI senior analyst Richard Salditt
writes in note.
* Since 1994, high-grade credit spreads have narrowed 75% of
the time by ...
Posted in Uncategorized | Comments Off on January Effect
Wednesday, December 24th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:00am: MBA Mortgage Applications, Dec. 19 (prior -3.3%)
* 8:30am: Initial Jobless Claims, Dec. 20, est. 290k (prior
289k)
* Continuing Claims, Dec. 13, est. 2.375m (prior 2.373m)
* Continuing Claims, Dec. 13, est. 2.375m (prior 2.373m)</li></ul>
* 9:45am: Bloomberg Consumer Comfort, Dec. 21 (prior 41.7)
Central ...
Posted in Uncategorized | Comments Off on What to Watch Today
Wednesday, December 24th, 2014
Via Brown Brothers Harriman:
Foreign Exchange: The US dollar’s gains scored yesterday in the wake of a strong upward revision in Q3 GDP to 5% have been pared slightly today in extremely thin market conditions. The euro was sold to a new 28-month low (~$1.2165) yesterday and is struggling to re-establish ...
Posted in Uncategorized | Comments Off on FX
Wednesday, December 24th, 2014
I want to wish readers a joyous Christmas and a Happy New Year. I will be spending the next several days enjoying life with my family and blogging will continue on the light side until 2015 arrives. Once again my best wishes for a blessed and happy holiday interlude.
Peace.
John Jansen
Posted in Uncategorized | 1 Comment »