Archive for January, 2015

Auction Outlook

Tuesday, January 13th, 2015

Via CRT Capital and sorry for late delivery: We are cautious about the prospects of taking down the 10-year reopening auction near the bottom of the yield range and anticipate a more meaningful concession either ahead of 1pm or at the auction itself in the form of a modest tail.  The ...

Ten Year Auction

Tuesday, January 13th, 2015

I have been very busy in my role as grandfather so have not paid close attention to markets. Notwithstanding that disclaimer I think the 10 year notehas cheapened on the curve and represents some relative value. This morning the 5s 10s spread was 52.3. I just clocked it at 53.4 so ...

New Issues today (So Far)

Tuesday, January 13th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-01-13 15:03:46.435 GMT By Greg Chang (Bloomberg) -- The following is a list of new issues expected to price today: * KfW $benchmark Aaa/AAA * 3Y Global * Spread set MS -5 vs IPT MS -4 area * Books: HSBC, NOM, TD * Books: HSBC, NOM, ...

Corporate Spreads

Tuesday, January 13th, 2015

1/12 CLOSE    1/13 OPEN      CHANGE GE  24        91/88          92/89            +1 WFC 24      109/106        110/107          +1 JPM 24      123/120        125/122          +2 BAC ...

MBS

Tuesday, January 13th, 2015

Mortgages opening 1 to 1+ tighter today. Lower prices are helping spreads to recover. In addition there was foreign buying overnight and the Fed is slated to buy today and in concert those factors are contributing to the benevolent mood in that market this morning.

JPMorgan Duration Survey

Tuesday, January 13th, 2015

Via Bloomberg: RATES: Longs Fall in Latest JPM Treasury Survey 2015-01-13 12:11:33.729 GMT By Robert Elson (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended Jan. 12 vs week ended Jan. 5. * Longs 13 vs 17 * Neutrals 65 vs 66 * Shorts 22 vs 17 * Net longs -9 vs 0 * "The all clients survey ...

What to Watch Today

Tuesday, January 13th, 2015

Via the good folks at Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 9:00am: NFIB Small Business Optimism, Dec., est. 98.5 (prior 98.1) * 10:00am: IBD/TIPP Economic Optimism, Jan., est. 48.7 (prior 48.4) * 10:00am: JOLTS Job Openings, Nov., est. 4.850m (prior 4.834m) * 2:00pm: Monthly Budget Statement, Dec., est. +$3b (prior +$53.2b) Central Banks * 5:00pm: Fed’s Kocherlakota ...

FX

Tuesday, January 13th, 2015

Via Marc Chandler at Brown Brothers Harriman: Oil Continues to Slide, Blowing Deflationary Winds - The continued fall in oil remains one of the main features of the investment climate - Lower bond yields are encouraging investors to move into equities - The US corporate earnings season formally began with solid results by Alcoa ...

UAE Minister on OPEC and OIL Prices

Tuesday, January 13th, 2015

Via the WSJ: Commodities Oil Extends Selloff on UAE Minister’s Comments By Georgi Kantchev Updated Jan. 13, 2015 6:25 a.m. ET LONDON—The oil market extended its selloff Tuesday, coming close to six-year lows, after the United Arab Emirates’ oil minister said the Organization of the Petroleum Exporting Countries would stand firm on its decision to keep ...

Corporate Bond Trading Yesterday

Tuesday, January 13th, 2015

Via Bloomberg: CREDIT: Short Issues Most Active; ASIA, KFW Set to Price 2015-01-13 10:59:20.792 GMT By Robert Elson (Bloomberg) -- The final Trace count for secondary trading was $12.4b, unchanged from Friday, vs $11.8b last Monday. * 144a trading added $2.2b of IG volume vs $1.9b * 8 of top-10 most active issues were 3 years or ...