Archive for January, 2015

Overnight Preview

Thursday, January 22nd, 2015

Via Robert Sinche at Amherst Pierpont Securities:   CHINA: The BBerg consensus expects the preliminary January HSBC/Markit Manufacturing PMI to slip slightly to 49.5 from 49.6 in December, which would be the weakest reading since May. However, recent Chinese data has surprised modestly to the upside. JAPAN: The preliminary Markit/JMMA Manufacturing PMI for ...

Steamy TIPS Auction

Thursday, January 22nd, 2015

Via CRT Capital: *** The 10-year TIPS auction was strong with non-dealer bidding at 74.2% vs. 63% norm and a 3.0 bp stop-through. *** * 10-year TIPS auction stops at 0.315% vs. a 0.345% 1-pm bid WI. * Dealers were awarded 25.9% vs. 37% average of last six 10-TIPS auctions. * Indirects get 64.0% ...

Market Analysis

Thursday, January 22nd, 2015

Via Richard Gilhooly at TDSecurities: So it appears that Bill Belichick was the only one unaware of deflation, apparently until Monday morning, but the ECB is ahead of the game and launched a credible and aggressive program to counter deflationary forces with an 18 month QE program. Bonds were under heavy ...

Danish Central Bank

Thursday, January 22nd, 2015

*DANISH CENTRAL BANK CUTS DEPOSIT RATE TO -0.35% FROM -0.2

What to Watch For Today

Thursday, January 22nd, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: Initial Jobless Claims, Jan. 17, est. 300k (prior 316k) * Continuing Claims, Jan. 10, est. 2.4m (prior 2.424m) * Continuing Claims, Jan. 10, est. 2.4m (prior 2.424m)</li></ul> * 9:00am: FHFA House Price Index m/m, Nov., est. 0.3% (prior 0.6%) * 9:45am: Bloomberg Consumer Comfort, Jan. 18 ...

Corporate Bond Trading: Very Heavy Trading Yesterday

Thursday, January 22nd, 2015

Via Bloomerg: IG CREDIT: Very High Volume, Large Issuance Session 2015-01-22 10:56:30.830 GMT By Robert Elson (Bloomberg) -- Trace count for secondary trading ended at $18.5b yday vs $17.3b on Tuesday, $16.3b last Wednesday. * $18.5b, highest since $19.2b on Feb. 12, 2014 * $18.5b, 9th highest since Jan. 2005 * $18.5b, more than on 99.6% of trading ...

January 22 2015 Opening

Thursday, January 22nd, 2015

Prices of Treasury coupon securities have continued the sharp retreat which began yesterday amid volatile trading. Dealers report European central bank buyers in the 5 s through 7s sector and real money from Japan buying in the same sector. Real money has been a chunky seller in the long end ...

FX

Thursday, January 22nd, 2015

Via Marc Chandler at Brown Brothers Harriman: Interest Rate Race Supplants Currency Wars - The interest rate race has now started in earnest, but this is not nearly as troublesome as a true currency war competitive depreciations - Despite the supposed press leaks about the ECB program, there are still a lot of ...

Goldman Tramples Volcker Rule

Thursday, January 22nd, 2015

The NYTimes leads with a piece this morning on Goldman Sachs and the Volcker Rule. The Volcker Rule is embedded in Dodd Frank and prohibits banks from making risky bets with its own money. The article reprts that Goldman has purchased apartments in Spain, a shopping mall in Utah and ...

SocGen on ECB

Thursday, January 22nd, 2015

This is an informative note from Kit Juckes to SocGen clients. Via Kit Juckes at Socgen: Good morning from a grey, chilly  Frankfurt. 30 years ago, when I was in my first job, living here, the dollar was surprising me by its strength daily. It got to USD/DEM 3.46, which is the ...