Archive for December, 2014
Friday, December 19th, 2014
Via Marc Chandler at Brown Brothers Harriman:
Dollar Firm As Correction Ends
- For many investors, today marks the end of the year, but it is ending on a favorable note
- Too many people were doing all kinds of mental and verbal gymnastics to account for what was a technical move ...
Posted in Uncategorized | Comments Off on FX
Friday, December 19th, 2014
Reuters is carrying an interesting story on a plan which would require less credit worthy sovereigns to set up a reserve to protect against losses on any of its bonds purchased in a new QE program which would entail outright buying of sovereign bonds. The purpose of the plan is ...
Posted in Uncategorized | Comments Off on Regarding QE in Europe
Thursday, December 18th, 2014
Via Robert Sinche at Amherst Pierpont Securities:
JAPAN: BOJ Policy Board Meeting, with no change expected to the ¥80trn target rise for the monetary base in 2015. Also will get the October reading on the All Industry Activity Index, which the BBerg consensus expects to be unchanged compared to the 1.0% ...
Posted in Uncategorized | Comments Off on Overnight Data
Thursday, December 18th, 2014
The Treasury market has continued the spiral lower in price (and if the inverse relationship between price and yield remains intact,higher in yield) which began during the Yellen press conference yesterday.
I think there are several reasons for the sell off today. Some of this is an unwind of the last ...
Posted in Uncategorized | Comments Off on Treasury market thoughts
Thursday, December 18th, 2014
Via CRT Capital:
* 5-year TIPS auction stops at 0.395% vs. a 0.387% 1:00 PM bid WI.
* Bid/Cover 2.37 vs. 2.53 average.
* Dealers were awarded 30% vs. 54% average for 5-year TIPS.
* Indirects get 64.8% vs. 40% norm.
* Directs take 5.2% vs. 6% average.
* Dealer Hit-Ratio: Dealers take 22% of what ...
Posted in Uncategorized | Comments Off on TIPS Result
Thursday, December 18th, 2014
Via Stephen Stanley at Amherst Pierpont Securities:
Initial jobless claims fell by 6,000 in the week ended December 13 to 289,000. The number of new filers has been between 289K and 297K in 5 of the last 6 weeks, suggesting that we may have settled in just below 300K. The readings ...
Posted in Uncategorized | Comments Off on Jobless Claims
Thursday, December 18th, 2014
Several fully paid up subscribers are reporting that a think tank is putting out a report that the FOMC will fully remove "considerable period " in January. The cycle of rate hikes is likely to begin mid year.
Posted in Uncategorized | 1 Comment »
Thursday, December 18th, 2014
Spreads have ratcheted in with risk markets ebullient this morning.
Via a fully paid up subscriber:
12/17 CLOSE 12/18 OPEN CHANGE
C 24 135/132 131/128 -4
WFC 24 113/110 109/106 -4
BAC 24 ...
Posted in Uncategorized | Comments Off on Corporate Bond Spreads
Thursday, December 18th, 2014
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Initial Jobless Claims, Dec. 13, est. 295k (prior
294k)
* Continuing Claims, Dec. 6, est. 2.435m (prior 2.514m)
* Continuing Claims, Dec. 6, est. 2.435m (prior 2.514m)</li></ul>
* 9:45am: Markit US Composite PMI, Dec. preliminary (prior
56.1)
* Markit US Services PMI, Dec. preliminary, est. 56.2
(prior ...
Posted in Uncategorized | Comments Off on What to Watch Today
Thursday, December 18th, 2014
Via Marc Chandler at Brown brothers Harriman:
- There were four notable changes in the FOMC statement
- We continue to see the most likely scenario for the first rate hike in June
- The Swiss National Bank announced a negative 25 bp interest rate on sight deposits and lowered the 3-month ...
Posted in Uncategorized | 1 Comment »