Archive for January, 2015
Friday, January 9th, 2015
The Treasury curve has steepened significantly in the moments following the release of the monthly labor report as investors take solace in the decline in average hourly earnings and in a decline in the participation. I suppose that each of those items might extend the limits of FOMC "patience" before ...
Posted in Uncategorized | Comments Off on Belly on Fire
Friday, January 9th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 8:30am: Change in Nonfarm Payrolls, Dec., est. 240k (prior
321k)
* Change in Private Payrolls, Dec., est. 225k (prior 314k)
* Change in Manufact. Payrolls, Dec, est. 15k (prior 28k)
* Unemployment Rate, Dec., est. 5.7% (prior 5.8%)
* Average Hourly Earnings, m/m, Dec., est. 0.2% ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Friday, January 9th, 2015
Via Bloomberg:
IG CREDIT: Dealer Positions Lowest Level in 16 Months
2015-01-09 11:36:27.237 GMT
By Robert Elson
(Bloomberg) -- Dealer positions in corporate bonds fell
$5.2b to $23.1b as of Dec 31. $45.9b, seen March 5, 2014 was the
high for the series Fed began April 2013; $23b low was in Aug
2013.
* Investment grade positions:
* Short ...
Posted in Uncategorized | Comments Off on Dealer Positions
Friday, January 9th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Dollar Soft Ahead of US Jobs Data
- The US dollar is slightly softer amid last minute position adjustments ahead of the US jobs data
- A disappointing report could prompt some profit-taking on long dollar positions as it plays into the hands of those who ...
Posted in Uncategorized | Comments Off on FX
Friday, January 9th, 2015
Via Bloomberg;
IG CREDIT: Highest Volume Since Dec. 2; Issuance Over $40b in Wk
2015-01-09 10:53:06.563 GMT
By Robert Elson
(Bloomberg) -- The final Trace count for secondary trading
was $18b, the highest since $18.1b Dec. 2, vs $16.7b Wednesday;
2014 high was $19.5b, Jan. 15.
* 144a trading added $2.4b of IG volume vs $2.9b
* Most ...
Posted in Uncategorized | Comments Off on Corporate Bond Trading Yesterday
Friday, January 9th, 2015
Via Reuters last night:
Reuters) - The Federal Reserve should leave short-term borrowing costs near zero for a seventh year in a row, a top Fed official urged on Thursday, citing sliding U.S. inflation and still-high unemployment.
The Fed "can best achieve its macroeconomic objectives by not raising the fed funds rate ...
Posted in Uncategorized | Comments Off on Kocherlakota Favors No Rate Hike in 2015
Friday, January 9th, 2015
Prices of Treasury coupon securities have registered bifurcated results in overnight trading. Yields at the very front end ( three years and in) are a tad higher while long er dated benchmarks have registered gains with the best gains in the longest maturities. So the market has erased some of ...
Posted in Uncategorized | Comments Off on Overnight Yield Curve
Friday, January 9th, 2015
This is from a fully paid up subscriber overseas and exactly as he sent it to me. I do not have the source.
*ECB STAFF SAID TO HAVE OUTLINED EU500B INVESTMENT GRADE QE PLAN
*ECB STAFF STUDY SAID TO FOCUS ON INVESTMENT-GRADE GOVT BONDS
*ECB SAID NOT TO HAVE TAKEN ANY DECISION ON ...
Posted in Uncategorized | Comments Off on ECB QE Planning
Thursday, January 8th, 2015
The Wall Street Journal reports on the Federal Reserve's internal investigation of JPMorgan's London trading debacle and reason for the failure of regulators to uncover that mismanaged risk.
Via the WSJ:
Markets
Full Report on ‘London Whale’ Incident Sheds More Light on New York Fed Role
Turf Battles, Crisis-Related Distractions Complicated New York Fed’s ...
Posted in Uncategorized | Comments Off on Thar She Blows: London Whale Revived
Thursday, January 8th, 2015
The Treasury yield curve has steepened rather significantly today. The 5s 10s spread opened at 48.9 and it is now 50.7 . The 10s 30s spread opened at 56 and is now 57.9. The move in 5s 30 is even more dramatic as it moved to 109.6 from 104.7 early ...
Posted in Uncategorized | Comments Off on Early Afternoon Miscellany