Archive for January, 2015

Core Pressures

Friday, January 16th, 2015

Here is an excerpt from a research piece by Jay Morelock of FTN Financial on the CPI this morning. He notes that in the core apparel price fell the most since 1998. Bottom Line:  Prices for clothing fell 1.2% in December, the most since 1998, after falling 1.1% in November: this ...

Corporate Bond Spreads

Friday, January 16th, 2015

This is about an hour and thirty minutes old but you can see the pressure bank and finance paper was under at that time. In contrast the IG 23 was only a tad wider. Via a fully paid up subscriber: 1/15 CLOSE    1/16 OPEN      CHANGE GE  24        ...

What to Watch Today

Friday, January 16th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data * 8:30am: CPI m/m, Dec., est -0.4% (prior -0.3%) * CPI y/y, Dec., est. 0.7% (prior 1.3%) * CPI Ex Food and Energy m/m, Dec., est. 0.1% (prior 0.1%) * CPI Ex Food and Energy y/y, Dec., est. 1.7% (prior 1.7%) * CPI Core Index SA, ...

FX

Friday, January 16th, 2015

Via Marc Chandler at Brown Brothers Harriman: Markets Still Trying to Make Sense of the SNB - The decision by the SNB to abandon the peg was as the lesser of two poor choices   - We find much of what is passing for analysis of the Swiss decision as speculators talking ...

January 16 2015 Opening

Friday, January 16th, 2015

Prices of Treasury coupon securities have registered mixed results when viewed against levels which prevailed in late NY trading yesterday (about 415PM New York time). The yield on the 2 year note climbed to 44.4 basis points from 41.6. The yield on the 5 year note climbed to 1.186 from ...

Corporate Bond Trading Yesterday

Friday, January 16th, 2015

Via Bloomberg: IG CREDIT: Trading Volume Remains High; GS Exits Blackout 2015-01-16 11:00:48.678 GMT By Robert Elson (Bloomberg) -- Trace count for secondary trading ended at $15.8b yday vs $16.3b on Wednesday, $18.0b last Thursday; 10-DMA $14.0b * Trace count for secondary trading closed at $15.8b yday, more than on 95% of trading days since Jan. 2005 * 144a ...

Pain Trade

Friday, January 16th, 2015

This is an excellent article from Bloomberg which chronicles some of the pain and dysfunction which flowed from the surprise move by the Swiss yesterday to uncap its currency. Via Bloomberg: Casualties From Swiss Shock Spread From New York to New Zealand By David Evans and Kevin Buckland Jan 16, 2015 2:22 AM ...

Merrill Lynch Research on Swiss National Bank and a Smattering of Other Stuff,too

Thursday, January 15th, 2015

Via Merrill Lynch: In dramatic fashion the CHF appreciated 21% on the day, as the SNB gave up defending their 1.2 peg to the Euro. Market participants speculated this move and it likely means that the SNB thinks the ECB may announce QE next week. A CHF currency peg with an ECB QE ...

Greek Problem?

Thursday, January 15th, 2015

Via a fully paid up subscriber: 2 Greek Banks Said to Request Cash Via ELA System: Ekathimerini 16:18 Two unidentified Greek banks were said to have submitted requests to the Bank of Greece for cash via the emergency liquidity assistance (ELA) system today, Ekathimerini reported, without saying where it got the information. • Requests to be discussed ...

Aftermath of the Swiss Move

Thursday, January 15th, 2015

This is very long but worthwhile and informative. Via TDSecurities: The SNB Aftermath ·        The SNB’s surprise decision to drop the floor opens up markets to new dynamics going forward. ·        EUR depreciation can be particularly sped up from here, with our initial target between this and ECB ...