Archive for March, 2015

FX

Thursday, March 12th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Rally Stalls Ahead of Retail Sales - We warned of an overstretched dollar rally as we started the week, and today’s price action fits into this narrative - During the North America session, attention will be focused on US retail sales for February - Australia ...

10 Year Note Result and the Bond Auction

Thursday, March 12th, 2015

This is a piece my friend Steve Liddy penned yesterday. He wonders if thye 10 year note result presages any particular outcome in the subsequent sale of Long Bonds. Via Stephen Liddy: Probably not much. Today’s ½ bp stop through, and 3rd highest indirect bid since 2003, might fuel the argument of ...

The Mighty Greenback and Fed Policy

Thursday, March 12th, 2015

Via the FT: Dollar surge poses policy dilemma for Fed Roger Blitz, Sam Fleming and Claire Jones The euro fell closer to parity with the dollar on Wednesday, as the US currency’s strength heightened the policy conundrum facing the US Federal Reserve as it prepares for its first interest-rate increase in nearly a ...

Secondary Market Corporate Bond Trading Yesterday

Thursday, March 12th, 2015

Via Bloomberg: IG CREDIT: Lowest Volume Wed. Since Jan.; 3 Set to Price 2015-03-12 09:43:34.666 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.6b vs $17.8b Tuesday, $17.4b last Wednesday. * Secondary IG trading lowest of any Wednesday since $16.3b on Jan. 14 * Feb. 4, 11 and Jan. 28, all ...

Ten Year Auction Result

Wednesday, March 11th, 2015

Via CRT Capital : *** The auction was strong with a 0.5 bp stop-through and non-dealer bidding at 68.8% vs. 59% norm *** * 10-year auction stops at 2.139% vs. 2.144% 1-pm bid WI. * Dealers were awarded 31.2% vs. 41% average of last four 10-year Reopenings. * Indirects get 58.6% vs. 50% norm. * ...

Declining Volumes and Volatility

Wednesday, March 11th, 2015

Via Bloomberg: Bond Trading Just Keeps Getting Worse as Treasury Prices Swing 2015-03-11 16:16:15.474 GMT (For more Market Line insights, see NI MKTLINE.) By Lisa Abramowicz (Bloomberg) -- It’s taking less and less these days to make the $12.5 trillion U.S. Treasuries market jump. And it’s been jumping a lot lately: The bonds gained 2.9 percent in January, ...

What to Watch for Today

Wednesday, March 11th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York; may be subject to delays) Economic Data * 7:00am: MBA Mortgage Applications, March 6 (prior 0.1%) Central Banks * 4:00pm: Reserve Bank of New Zealand sets official cash rate, est. 3.5% (prior 3.5%) * 4:05pm: RNBZ’s Wheeler holds news conference Supply * 1:00pm: U.S. to sell $21b 10Y notes in ...

Overnight Flows

Wednesday, March 11th, 2015

Real money in Asia sold Long Bonds. Asian money managers sold 3s to buy 4s. European central banks bought 5s. Bank portfolios bought 2s.

Secondary Market Corporate Bond Trading Yesterday

Wednesday, March 11th, 2015

Via Bloomberg: IG CREDIT: Volume Higher, Spreads Wider; Issuance Remains High 2015-03-11 10:08:30.215 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.8b vs $15.8b Monday, $16.6b last Tuesday. 10-DMA $16.3b. * 144a trading added $3.5b of IG volume, the highest volume of 2015, vs $1.9b on Monday, $1.9b last Tuesday * Most ...

FX

Wednesday, March 11th, 2015

Via Marc Chandler at Brown Brothers : Dollar Momentum Remains Intact - The dollar continues to rally, more from momentum than from any fundamental developments - The divergence theme remains intact - There are no major US data releases today, but the Fed will release the results of its bank stress tests ...