Archive for April, 2015

Automated Trading Agonies

Thursday, April 9th, 2015

Via Bloomberg: Automated Trading Breeds Manipulation, Liquidity Risks: TMPG 2015-04-09 17:22:42.64 GMT By Alexandra Harris (Bloomberg) -- Heightened use of automated trading in cash Treasury markets creates myriad risks like operational, market manipulation, transmission, as well as risks to market liquidity, according to Treasury Market Practice Group consultative paper published today. * Recent market events linked to automated trading ...

What to Watch for Today

Thursday, April 9th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Initial Jobless Claims, April 4, est. 283k (prior 268k) * Continuing Claims, March 28, est. 2.350m (prior 2.325m) * Continuing Claims, March 28, est. 2.350m (prior 2.325m)</li></ul> * 9:45am: Bloomberg Consumer Comfort, April 5 (prior 46.2) * Bloomberg April U.S. Economic Survey * Bloomberg April U.S. Economic ...

FX

Thursday, April 9th, 2015

Via Marc Chandler at Brown Brothers harriman: Dollar Firmer As Recovery Continues - The US dollar is broadly higher on follow through buying after recovering in North America yesterday, helped in part by the FOMC minutes - The FOMC minutes shed some light on the role of the dollar - The US ...

Jamie Dimon on the Next Crisis

Thursday, April 9th, 2015

I will also link to the letter to which Dimon wrote to shareholders which goes into greater details than this article on liquidity in the market place. The germane part of that letter begins on page 30 and ends on page 34. One point worth highlighting here is Dimon's comment on ...

Greek Soap Opera

Thursday, April 9th, 2015

The UK Business Insider has a nice post on the continuing travails of the Greek government as it tries to navigate its perilous fiscal situation. The country should be able to come up with the cash to make a payment to the IMF today but life will become more perilous ...

Overnight Data

Wednesday, April 8th, 2015

Via Robert Sinche at Amherst Pierpont Securities: UK: The BoE is expected to keep rates on hold and make no changes to its asset purchase program. JAPAN: Machine Tool Orders have increased by more than 20% YOY for the last 15 months, although strong orders in March 2014 (+41.8% YOY) could bring ...

Eclectic Topics Via Merrill Lynch

Wednesday, April 8th, 2015

Via Merrill Lynch Research: New York Fed President Dudley continues to argue the dependency of the... ...specific path for the coming rate hiking cycle on financial market conditions. He doesn't want stocks to go down a lot, but also not to increase meaningfully. The Yellen Collar. While the Minutes of the March 17-18 FOMC ...

Shifting Risks

Wednesday, April 8th, 2015

Via Greg Ip at the WSJ: By Greg Ip April 8, 2015 9:30 a.m. ET 15 COMMENTS Squeezing risk out of the economy can be like pressing down on a water bed: The risk often re-emerges elsewhere. So it goes with efforts to make the financial system safer since the financial crisis. Officials have forced ...

Might the Fed Sell Securities

Wednesday, April 8th, 2015

Via Steve  Liddy a friend and former colleague: We all know there is a shortage of collateral and there are a number of short term funds that have moved to 'Govt only', but if the FED were to really sell front end paper, could the Street b/s handle that? In their discussion ...

Ten Year Note Auction

Wednesday, April 8th, 2015

This note was sent to me about an hour ago but the analysis is still valid.   Via CRT Capital: We are cautious about this afternoon's 10-year auction and while we expect non-dealer interest to be significant (averages 60% for this benchmark), there is still the risk of a modest tail for the ...