Archive for March, 2015

JPM Duration Survey: Not Alot of Longs

Tuesday, March 10th, 2015

Via Bloomberg: RATES: Fewest Net Longs Since October in Latest JPM Survey 2015-03-10 11:10:42.942 GMT By Robert Elson (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended March 9 vs weeks ended Mar. 2, Feb. 23. * Longs 11 vs 13 vs 17 * Neutrals 65 vs 65 vs 63 * Shorts 24 vs 22 vs ...

Hilsenrath Article

Tuesday, March 10th, 2015

Via Jon Hilsenrath at the WSJ: HILSENRATH’S TAKE: AS FED OFFICIALS BEGIN BLACKOUT, CONFIDENCE GROWS THEY CAN DROP PATIENCE ASSURANCE Federal Reserve officials enter their self-imposed blackout period today, in which they stop making public comments about the economy and monetary policy and engage in intensifying discussions about the statement that will ...

What to Watch for Today

Tuesday, March 10th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York; may be subject to delays) Economic Data * 9:00am: NFIB Small Business Optimism, Feb., est. 98.9 (prior 97.9) * 10:00am: Wholesale Inventories, Jan., est. -0.1% (prior 0.1%) * Wholesale Sales, Jan., est. -0.5% (prior -0.4%) * Wholesale Sales, Jan., est. -0.5% (prior -0.4%)</li></ul> * 10:00am: JOLTS Job Openings, Jan., est. ...

Sluggish Spending but Blame the Snow

Tuesday, March 10th, 2015

Via Bank America Merrill Lynch Research: BAC internal data show little improvement in consumer spending in February, matching the recent sluggish trend. We believe this partly owes to the harsh winter weather, with sales down meaningfully in regions hit by excessive snowfall. Looking ahead, we expect a rebound in spending amid strong job ...

Overnight Flow

Tuesday, March 10th, 2015

Dealers report a fairly active overnight session. Real money in Asian sold the 3 year through 5 year sector while pension funds were better sellers of the sector. Central banks bought both Long Bonds and 10 year notes. The movement along the yield curve was mixed. The 5s 10s spread steepened ...

FX

Tuesday, March 10th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Bulls Charge Ahead The dollar's gains are accelerating as European bond yields continue to fall French and Italian industrial production data were mixed China reported an unexpectedly large rise in CPI, but PPI deflation accelerated China will allow local governments to roll-over CNY1 trillion of high cost ...

Secondary Market Corporate Bond Trading Yesterday

Tuesday, March 10th, 2015

Via Bloomberg: G CREDIT: Energy Issues Led Trading; FMSWER, KBN Set to Price 2015-03-10 09:58:13.748 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $15.8b vs $15b Friday, $12.9b last Monday. 10-DMA $16.3b. * 144a trading added $1.9b of IG volume vs $1.9b on Friday, $1.7b last Monday * Most active issues: * PETBRA ...

Clinton Fatigue

Monday, March 9th, 2015

Hillary Clinton at the moment appearsto be the  inevitable nominee on the Democrat side to succeed the term limited Obama (who if given the choice would try to break FDRs record four terms). Hillary has been in the public eye now for a quarter century and Edward Luce of the ...

Treasury Supply This Week

Monday, March 9th, 2015

The USTreasury will auction $24 billion 3 year notes tomorrow and $21 billion 10 year notes on Wednesday and complete the process with and offering of $13 billion Long Bonds on Friday. For the purists the 10s and 30s are each one month shorter as they are reopening and the ...

Overnight Flows

Monday, March 9th, 2015

Via Sundry Sources: Japanese investors sold 2s and bought 7s. Non Japan real money sold 4 year paper and bought 2 year and 3 year sector paper. Trading accounts bought 2s and sold 3s. End users bought spread product in the 5 year to 7 year sector. Hedge funds bought 10 year notes.