Archive for January, 2015
Tuesday, January 13th, 2015
Prices of Treasury coupon securities have continued their astounding surge as the price of oil continue to tumble. In overnight trading oil has dropped below $45 and the 10 year note has tested the levels attained in the famous short squeeze of October 15 2014. That is about a 1.85 ...
Posted in Uncategorized | Comments Off on January 13 2015 Opening
Monday, January 12th, 2015
In the interest of full disclosure the author, RIchard Gilhooly, is a friend and former colleague. Notwithstanding former his association with me he writes great stuff that will get the synapses in the brain firing.
Via Richard Gilhooly at TDSecurities:
Short and intermediate Treasuries continue to have a strong bid ahead of ...
Posted in Uncategorized | Comments Off on Trenchant Analysis
Monday, January 12th, 2015
Via Bloomberg and it is long:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2015-01-12 15:01:00.2 GMT
By Greg Chang
(Bloomberg) -- The following is a list of new issues
expected to price today:
* Export-Import Bank of Korea $benchmark Aa3/A+
* 5Y, 10Y
* IPT 5Y +105, 10Y +120 both area
* Denoms: 200k ...
Posted in Uncategorized | Comments Off on Today’s New Issue Corporate Supply
Monday, January 12th, 2015
I believe that when the "taper tanturm"began in May 2013 the 10 year was trading at 1.60 percent. In that ugly spasm the 10 year retreated to 3 percent by labor Day and has rarely looked back since. So the full round trip back to 1.60 would be fitting and ...
Posted in Uncategorized | Comments Off on Bank America Thinks 1.60 10 Year Possible
Monday, January 12th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 10:00am: Fed’s Labor Market Conditions Index, Dec. (prior
2.9)
Central Banks
* 12:40pm: Fed’s Lockhart speaks in Atlanta
Supply
* 11:00am: U.S. to announce plans for auction of 4W bills
* 11:30am: U.S. to sell $24b 3M, $24b 6M bills
* 1:00pm: U.S. to sell $24b 3Y notes
Posted in Uncategorized | 2 Comments »
Monday, January 12th, 2015
David Ader at CRT Capital comments on this week's auctions auctions of 3s 10s and 30s. He notes the accelerated schedule with auctions Monday through Wednesday rather than the normal Tuesday through Thursday. That is a function of Thursday being the 15th which is settlement day so an auction that ...
Posted in Uncategorized | Comments Off on Supply Consideration
Monday, January 12th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Drivers for the Week Ahead
- The greatest risk to the divergence theme is that the consensus would swing against ideas that the Federal Reserve will raise rates near mid-year
- The preliminary negative inflation print in the euro area is likely to be confirmed this ...
Posted in Uncategorized | Comments Off on FX
Monday, January 12th, 2015
Via Merrill Lynch Research:
Our BAC internal data show a decline in spending at the pump, which is intuitive given the drop in gas prices.
Consumers are spending some of the windfall cash - quick service restaurants have benefited, with a pick-up in December.
However, on the downside, the sharp drop in oil ...
Posted in Uncategorized | Comments Off on Winners and Losers in the Energy market
Monday, January 12th, 2015
Via Bloomberg;
IG CREDIT: Volume Lower; ANZ, EIBKOR to Price; AA Earnings Today
2015-01-12 10:52:51.736 GMT
By Robert Elson
(Bloomberg) -- The final Trace count for secondary trading
was $12.4b vs $18b Thursday; 2014 high was $19.5b, Jan. 15.
* 144a trading added $1.9b of IG volume vs $2.4b
* Most active issues longer than 2 years
* ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, January 12th, 2015
Prices of Treasury coupon securities have slipped from the robust levels which prevailed at the close of business on Friday. On Friday bond bulls took solace in the employment report as an examination of the entrails of that report showed that while growth in employment is solid wages are quite ...
Posted in Uncategorized | 2 Comments »