Archive for January, 2015

German Inflation

Monday, January 5th, 2015

We are closing in on 100 years since the disastrous inflation struck Germany in the post WW1 era. Today we are at the opposite pole as inflation is somnolent and there is no sign of the general populace roaming the streets as they did in the Weimar Republic days with ...

Corporate Spreads

Monday, January 5th, 2015

Via a fully paid up subscriber: 1/2 CLOSE      1/5 OPEN      CHANGE C  24      130/127        131/128          +1 WFC 24      104/101        105/102          +1 BAC 24      130/127        132/129      ...

Dealer Positions

Monday, January 5th, 2015

Via Bloomberg: IG CREDIT: Dealer Positions in Coupons Fall Slightly 2015-01-05 11:43:34.137 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds fell $5.2b to $28.3b as of Dec 24. $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 issues ...

What to Watch for Today

Monday, January 5th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 7:30am: RBC Consumer Outlook Index, Jan. (prior 53.3) * 9:45am: ISM New York, Dec. (prior 62.4) * Wards Domestic Vehicle Sales, Dec., est. 13.70m (prior 13.78m) * Wards Total Vehicle Sales, Dec., est. 16.90m (prior 17.08m) * Wards Total Vehicle Sales, Dec., est. 16.90m (prior 17.08m)</li></ul> Supply * 11:00am: U.S. ...

FX

Monday, January 5th, 2015

Via Mark Chandler at Brown Brothers Harriman: Drivers for the Week Ahead 1.  De-synchronized business cycles persist with the US ahead of the pack 2.  The prospects of sovereign bond purchases by the ECB, amid political uncertainty sparked by Greece’s snap election 3.  The continued drop in energy prices is a stimuluative factor, but ...

Greek Yields

Monday, January 5th, 2015

Worries abound regarding the outcome of the upcoming Greek election and those concerns have prompted a surge in Greek yields. Via the FT: MarketsJitters over Greek election push up borrowing costs The drama unfolding in Athens has caused another jump in Greece's bond yields, as markets anxiously watch the political games ahead of ...

Corporate Bonds

Monday, January 5th, 2015

This Bloomberg story recounts corporate bond trading on Friday and delves into potential issuers early in the new year. Via Bloomberg: IG CREDIT: Low Volume Session Opens New Year; Pipeline Grows 2015-01-05 11:05:56.643 GMT By Robert Elson (Bloomberg) -- The final Trace count for secondary trading was $1.9b Friday vs $2b New Year’s Eve. 2014 secondary ...

January 05 2015 Opening

Monday, January 5th, 2015

Prices of Treasury coupon securities are registering modest losses in the first fully staffed session of the New Year. The yield on the benchmark 5 year note has climbed to 1.632 from 1.612 at the close on Friday. The yield on the 7 year note has increased to 1.939 from ...

A Market Opinion

Friday, January 2nd, 2015

Via Richard Gilhooly at TDSecurities: The new year has started with a decided momentum to lower yields, as the implosion in commodity markets continues and currency volatility remains high as positions are adjusted after year-end to reflect growing imbalances. Draghi's comments from several days ago appear to be the catalyst for ...

Dovish Draghi

Friday, January 2nd, 2015

The ECB head granted an interview to a German newspaper and said he cant exclude the possibility of deflation in the Euro area and hinted at QE. The Euro trades near 4 1/2 year lows and sovereign debt of peripherals is screaming tighter. I follow US/Spain in the 10 year ...