Archive for December, 2014

EVO Shortage

Sunday, December 21st, 2014

Via the FT: Rising price of olive oil is a pressing matter Emiko Terazono Never mind the shale revolution, or Opec’s deliberations. Some oil producers are enjoying the highest prices in six years. A severe drought in Spain and a fruitfly infestation in Italy have caused a surge in the price of olive oil. ...

TIPS Still in Demand

Saturday, December 20th, 2014

Via the WSJ: Markets Investors Continue to Scoop Up TIPS Buyers Buy Inflation-Protected Securities at Fastest Pace in 27 Months By Min Zeng Dec. 19, 2014 5:19 p.m. ET The retreat of inflation hasn’t killed investors’ appetite for bonds that protect against rising price levels. Investors this month have snapped up U.S. Treasury inflation-protected securities, or TIPS, at ...

Time Drawing Nigh to Normalize

Friday, December 19th, 2014

*WILLIAMS SAYS GETTING CLOSER TO TIME TO CONSIDER NORMALIZING *FED'S WILLIAMS SPEAKS IN BLOOMBERG RADIO INTERVIEW *WILLIAMS SAYS `PATIENT' WAS NATURAL PROGRESSION FOR FED

Flows

Friday, December 19th, 2014

Dealers reporting particularly light flows today in the cash market but chunky buying in the long end of the futures market. That buying has 5s 30s trading 3 basis points flatter at about 115 against 115 at the open this morning. One dealer did note that notwithstanding that flattening the ...

Kocherlakota on Inflation

Friday, December 19th, 2014

Via the WSJ: One of men who cast a dissenting vote at this week’s Federal Reserve policy meeting said Friday the U.S. central bank is playing an increasingly risky game that could lead to further declines in already weak inflation. The official, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota, said in ...

Corporate Bond Spreads

Friday, December 19th, 2014

Long dated financials opening mixed and IG just a tad wider. 12/18 CLOSE    12/19 OPEN      CHANGE C  24      129/126        130/127          +1 WFC 24      106/103        105/102          -1 BAC 24      129/126      ...

RV Trade

Friday, December 19th, 2014

The spread between Bunds and US in the 10 year sector is at its widest levels since 1999,according to a Bloomberg article. The spread rests at about 160 basis points. I also watch Spain/US and when I marked that spread it was at its widest level since I began following it ...

Steeper Curve

Friday, December 19th, 2014

Prior to the FOMC statement the 5s 30s curve rested at 115.7. In overseas trading on Wednesday evening I marked it as narrow as 111. That spread is now 118 basis points. Dealers report robust sales of the bond sector yesterday and then again in this most recent evening session. ...

Big Jump in Dealer Holdings of Corporate Bonds

Friday, December 19th, 2014

Via Bloomberg: IG CREDIT: Record Jump in Long Dealer Positions Off Record Low 2014-12-19 11:45:00.3 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds rose $9b to $35.1b as of Dec 10. $45.9b, seen March 5, was the high for the series Fed began April 2013; $23b low was in Aug 2013. * Investment grade ...

Secondary market Corporate Bond trading Yesterday

Friday, December 19th, 2014

Via Bloomberg: IG CREDIT: Spreads Move Further From 2014 Wides; HY Leads 2014-12-19 11:02:40.179 GMT By Robert Elson (Bloomberg) -- The final Trace count for secondary trading was $15.4b vs $15.7b Wednesday and $15.3b the previous Thursday. 10-DMA at $14.7 vs $14.9b, as $17.8b falls from the count; 10- DMA of only Thursday sessions $16.3b. * 144a trading ...