Archive for December, 2014
Wednesday, December 17th, 2014
In an earlier post I noted that 3s were better by 3 ticks while the rest of the stack had improved by 1 to 1+ ticks. In a very recent note another trader reports buying in 4s and 4.5s and all mortgages are now 4 ticks to 4+ ticks better ...
Posted in Uncategorized | Comments Off on More MBS
Wednesday, December 17th, 2014
As I noted earlier I did not focus on the CPI print this morning. I read through some research and here is the piece from TDSecurities which points out the disinflationary thrust of that report.
Via Millan Mulraine at TDSecurities;
A dis-inflationary thrust has re-emerged owing to the collapse in energy prices. ...
Posted in Uncategorized | Comments Off on CPI
Wednesday, December 17th, 2014
TIPS breakevens are trading well today. The 5 year break is at 118 versus 114 midday yesterday. The 10 year is at 168 versus 163 yesterday. The 30 year is at 197 currently versus 192 yesterday.
I will confess I have not paid rapt attention to the CPI report released this ...
Posted in Uncategorized | Comments Off on TIPS
Wednesday, December 17th, 2014
Mortgages are having a fine day led by 3s which are 3 ticks tighter to Treasuries. Higher coupons are 1 to 1+ ticks better. One market maker suggested that most of what goes on this morning is position squaring ahead of the central bank.
Posted in Uncategorized | Comments Off on MBS
Wednesday, December 17th, 2014
It has been some time since I wrote on other asset classes besides Treasuries.
I spoke to a market maker this morning and asked him what he thought the resting position is in the street as we approach FOMC time. He commented that traders had been in paid positions but the ...
Posted in Uncategorized | Comments Off on Swap Spreads
Wednesday, December 17th, 2014
Via Marc Chandler at Brown Brothers Harriman:
Dollar Recovers, Oil Doesn't
- The US dollar's recovery that began yesterday continues today
- The FOMC meeting today is the main focus; US CPI figures to be released earlier are of little consequence
- Japan's trade deficit was smaller than expected, but this reflected a ...
Posted in Uncategorized | Comments Off on FX
Wednesday, December 17th, 2014
Via Bloomberg:
IG CREDIT: Spread Widening Accelerates, New 2014 Records Set
2014-12-17 10:57:55.136 GMT
By Robert Elson
(Bloomberg) -- The final Trace count for secondary trading
was $13.6b vs $11.6b Monday and $17b the previous Tuesday. 10-
DMA at $15b vs $15.5b as $18.1b on Dec 2 falls from the count;
10-DMA of only Tuesday sessions $15.5b.
* ...
Posted in Uncategorized | Comments Off on Secondary market corporate bond trading yesterday
Wednesday, December 17th, 2014
Prices of Treasury coupon securities have tumbled in overnight trading as the frantic risk off theme which dominated trading yesterday has faded. The yield on the benchmark 5 year note has climbed to 1.556 from 1.513 at the close of trading in New York yesterday. The yield on the 7 ...
Posted in Uncategorized | Comments Off on December 17 2014 Opening
Wednesday, December 17th, 2014
Via Bloomberg:
*BOE INTEREST-RATE VOTE 7-2; ASSET-PURCHASE VOTE 9-0
*BOE SAYS U.K. NEAR-TERM ACTIVITY STRONGER THAN ANTICIPATED
*BOE MINORITY: SURVEYS SUGGEST WAGE GROWTH MAY PICK UP SHARPLY
*BOE MINORITY SAYS SHOULD LOOK THROUGH SHORT-TERM PRICE CHANGES
*BOE SAYS EURO-AREA OUTLOOK REMAINS SUBDUED
*BOE MAJORITY SAYS SIGNS OF WAGE-GROWTH PICKUP PROMISING
*BOE SAYS OIL-PRICE DECLINE IS NET STIMULUS ...
Posted in Uncategorized | Comments Off on Bank Of England Minutes
Wednesday, December 17th, 2014
The Russian currency has rebounded from its ignominious slide yesterday as the Finance Ministry announced that the currency is undervalued and also stated that it has begun to intervene in the market to support the currency. According to the WSJ the Finance Ministry holds $7 billion in reserves. That is ...
Posted in Uncategorized | Comments Off on Ravaged Ruble Rebounds