Archive for March, 2015
Friday, March 6th, 2015
It was a very quiet overnight session as participants await the monthly labor report Godot.Dealers report Japan based end users buying in the 2 year sector. Non Japan Asia investors bought 7 year spread product. Fast money sold the belly to buy the wings.
The yield curve is a tad flatter ...
Posted in Uncategorized | Comments Off on Overnight Flows
Thursday, March 5th, 2015
Ambrose Evans Pritchard writes for the UK Telegraph. He wrote a very long piece yesterday on the problems confronting China. He writes that the world's second largest economy is engaged in contractionary fiscal policy which will motivate a harder landing than most expect.
Posted in Uncategorized | Comments Off on China at the Crossroads
Thursday, March 5th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Dollar Firm, Euro Heavy Ahead of ECB
- The euro remains heavy as the market awaits the ECB's press conference where Draghi is expected to provide more details on the bond buying program
- The Bank of England meeting is a non-event today
- China lowered ...
Posted in Uncategorized | Comments Off on FX
Thursday, March 5th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:30am: Challenger Job Cuts, y/y, Feb. (prior 17.6%)
* 8:30am: Non-farm Productivity, 4Q final, est. -2.3% (prior
-1.8%)
* Unit Labor Costs, 4Q final, est. 3.3% (prior 2.7%)
* Unit Labor Costs, 4Q final, est. 3.3% (prior 2.7%)</li></ul>
* 8:30am: Initial Jobless Claims, Feb. 28, est. ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Wednesday, March 4th, 2015
Via WSJ:
By
Mark Magnier
Updated March 4, 2015 8:43 p.m. ET
BEIJING—China lowered its economic growth forecast to about 7% this year at the opening of the country’s biggest political event of the year, ushering in what leaders have dubbed a “new normal” of slower growth in the world’s second-largest economy.
Premier ...
Posted in Uncategorized | Comments Off on China Lowers Growth Target to 7 Percent
Wednesday, March 4th, 2015
Via Merrill Lynch Research:
From weakness to strength. Spreads on our high grade corporate bond index are now 23bps off their end-of-January local wides of 153bps - note though that 5bps was related to downgraded names like Petrobras leaving the index. This sharp rally in spreads happened as 5-year, 5-year forward ...
Posted in Uncategorized | Comments Off on On Corporate Bond Spreads
Wednesday, March 4th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Dollar Firms, Euro Slides As Service PMIs Disappoint
- BOC Governor Poloz dampened expectations for a cut today with last week's reiteration that the January rate cut was an insurance policy to buy time
- The Reserve Bank of India surprised with yet another unscheduled rate ...
Posted in Uncategorized | Comments Off on FX
Wednesday, March 4th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
Economic Data
* 7:00am: MBA Mortgage Applications, Feb. 27 (prior -3.5%)
* 8:15am: ADP Employment Change, Feb., est. 219k (prior 213k)
* 9:45am: Markit US Composite PMI, Feb. final (prior 56.8)
* Markit US Services PMI, Feb. final, est. 57 (prior 57)
* Markit US Services PMI, Feb. ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Wednesday, March 4th, 2015
Via Bloomberg:
IG CREDIT: PETBRA Issues Led Trading; BOEN, CBAAU in Pipeline
2015-03-04 11:00:28.265 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $16.6b vs $12.9b Monday, $17.9b last Tuesday. 10-DMA
$16.1b.
* 144a trading added $1.9b of IG volume vs $1.7b Monday, $2.1b
last Tuesday
* Most active issues longer than 3 ...
Posted in Uncategorized | Comments Off on Secondary Market Corporate Bond Trading Yesterday
Tuesday, March 3rd, 2015
Liability driven investors are the financial road kill of zero and negative rates.
Via Bloomberg:
Draghi's Rescue Plan Has Created a $103 Billion Problem
S&P Says Sinking Bond Yields Have Worsened Pension Shortfalls
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by Jennifer Ryan
4:39 AM EST
March 3, 2015
There's a corner of the pension world ...
Posted in Uncategorized | Comments Off on Unintended Consequence