Archive for January, 2015
Tuesday, January 6th, 2015
Mortgages are opening unchanged to Treasuries to as much as 4 ticks wider (in the higher coupons). One trader in a note offered the view that MBS are not cheap but technicals are superior with Fed buying swamping origination. For example the Fed will be in buying about $1.9 billion ...
Posted in Uncategorized | Comments Off on MBS
Tuesday, January 6th, 2015
Via Bloomberg:
RATES: Client Shorts Fall as New Year Begins, JPM Survey Says
2015-01-06 12:10:53.970 GMT
By Robert Elson
(Bloomberg) -- The JPMorgan Treasury Client Survey for the
week ended Jan. 5 vs week ended Dec. 15.
* Longs 17 vs 15
* Neutrals 66 vs 61
* Shorts 17 vs 24
* Net Longs 0 vs -9
* "The ...
Posted in Uncategorized | Comments Off on JPMorgan Duration Survey
Tuesday, January 6th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 9:45am: Markit US Composite PMI, Dec. final (prior 53.8)
* Markit US Services PMI, Dec. final, est. 53.7 (prior
53.6)
* Markit US Services PMI, Dec. final, est. 53.7 (prior
53.6)</li></ul>
* 10:00am: Factory Orders, Nov., est. -0.5% (prior -0.70%)
* 10:00am: ISM Non-Manufac. Composite, Dec., est. ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Tuesday, January 6th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Oil Continues to Tumble, Driving Yields Lower
- Oil prices are tumbling following yesterday's announcement by Saudi Arabia of deeper discounts for the US and Europe, and is spurring a significant decline in bond yields
- The yen is being lifted by the drop in US ...
Posted in Uncategorized | Comments Off on FX
Tuesday, January 6th, 2015
Via Bloomberg:
IG CREDIT: Long Bonds Most Active; PHILIP, RENTEN to Price
2015-01-06 10:53:48.539 GMT
By Robert Elson
(Bloomberg) -- The final Trace count for secondary trading
was $11.8b vs $1.9b Friday. 2014 secondary trading high was in
Jan., low in Dec.
* 144a trading added $2.3b of IG volume
* Most active issues longer than 2 years
* ...
Posted in Uncategorized | Comments Off on Secondary market Corporate Bond Trading Yesterday
Tuesday, January 6th, 2015
Prices of Treasury coupons posted another round of gains in overnight trading as the risk off climate, deflation/disinflation fears, and concerns regarding the Greek elections dominate trading. The dollar remains in a bull market against virtually all currencies and that reality is guiding investment flows to the US. The yield ...
Posted in Uncategorized | Comments Off on January 06 2015
Tuesday, January 6th, 2015
This one is also from a fully paid up subscriber (across the pond) and as he says is making the rounds in Europe. The source is in the Netherlands and the article describes some ECB working papers which suggest an operational plan for the ECB when (if?) it decides to ...
Posted in Uncategorized | Comments Off on Executing Sovereign Bond Buying in Europe
Tuesday, January 6th, 2015
A fully paid up subscriber forwarded to me some research from Scotia Bank. The analysts, Guy Hasselman and John Zawada, posit that the key to understanding markets in 2015 is the dollar. They assert that the dollar will appreciate in 2015 and it does not matter what the FOMC policy ...
Posted in Uncategorized | Comments Off on Prepare for Another Round of Very Low Rates
Monday, January 5th, 2015
This one you could not make up. It seems that liberal citadel Harvard has imposed higher health care costs on faculty and staff (many of whom were full throated supporters of the legislation) and now the faculty is in an uproar about the "pay cut". It is good to peer ...
Posted in Uncategorized | Comments Off on From the Schadenfreude Department
Monday, January 5th, 2015
I spent a large chunk of my bond market career at the House of Morgan (buy the book by Ron Chernow) with about 7 year at Chase Manhattan Bank and with 11 years at JPMorgan. I was a victim of the Chase takeover of JPM as the bank portfolio was ...
Posted in Uncategorized | 4 Comments »