Archive for April, 2015

Eclectic Topics

Tuesday, April 7th, 2015

Via Bank America Merrill Lynch Research: Dismissing the jobs report Interest rates have now almost completely recovered from Friday's jobs inspired rally. That shows a market increasingly concluding that the weak jobs report was a one-off with limited implications for liftoff. If our view that the US economy bounces back holds true, IG could ...

Aging Baby Boomer Alert

Tuesday, April 7th, 2015

Via Bloomberg: McLean’s ‘American Pie’ Manuscript Sells for $1.2 Million (1) 2015-04-07 15:14:50.621 GMT (Updates with bidders in second paragraph.) By Madeline McMahon (Bloomberg) -- The manuscript for Don McLean’s “American Pie,” which was partially written on paper he found in a trash can, sold for $1.2 million. Christie’s in New York sold 16 pages of McLean’s handwritten lyrics ...

Three Year Note Auction

Tuesday, April 7th, 2015

Via CRT Capital: We are optimistic about this afternoon's $24 bn 3-year auction and see the risk of a stop-through in light of the recent performance of new 3s, small auction size, and the large maturities this week in the Treasury market.  On the other hand, the WI currently indicates the ...

Refunding Week

Tuesday, April 7th, 2015

David Ader of CRT Capital in his morning note reports that the refunding this week actually represents a paydown. Via David Ader at CRT Capital: It's worth reiterating that offsetting this week's auctions are maturities totaling $60.7 bn - leaving a net paydown of -$2.7 bn.  This isn't the largest paydown for ...

FX

Tuesday, April 7th, 2015

Via Marc Chandler at Brown Brothers Harriman: With full liquidity returning to the markets, the US dollar has built on the recovery seen in the North American afternoon yesterday.  The greenback's gains against the euro are particularly surprising; catching many off guard.  The euro has slumped two cents from yesterday's highs, ...

JPMorgan Duration Survey

Tuesday, April 7th, 2015

Via Bloomberg: RATES: No Changes in Lastest JPM Survey 2015-04-07 11:09:02.223 GMT By Robert Elson (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended April 6 vs weeks ended March 30, 23. * Longs 13 vs 13 vs 9 * Neutrals 65 vs 65 vs 71 * Shorts 22 vs 22 vs 20 * Net longs -9 ...

What to Watch Today

Tuesday, April 7th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) Economic Data ** 10:00am: IBD/TIPP Economic Optimism, April, est. 49.0 (prior 49.1) ** 10:00am: JOLTS Job Openings, Feb., est. 5.007m (prior 4.998m) ** 3:00pm: Consumer Credit, Feb., est. $12.25b (prior $11.562b) Central Banks ** 8:50am: Fed’s Kocherlakota speaks in Bismarck, N.D. ** 11:00pm: Bank of Japan issues policy statement, Kuroda ...

Yellen Collar

Monday, April 6th, 2015

This piece from Merrill Lynch research contains the full post which FT wrote about in the previous post. I think the more interesting aspect of this article is the "Yellen Collar" discussion in the third paragraph. They cite a speech by William Dudley who has noted that if financial conditions do ...

Extreme Weather Watch

Monday, April 6th, 2015

Via the FT: MarketsAn Extreme Winter Weather index bearing good news 2 hours ago URL Twitter This US winter has, once again, turned Wall Street economists into weather forecasters. And understandably so. The release on Friday of the monthly employment report was notable only in that at 126,000, the jobs tally missed economists' forecasts by the ...

Merrill Lynch on Credit Spreads

Sunday, April 5th, 2015

Via Merrill Lynch Research; From technicals to fundamentals The March jobs report validated other weak activity data to start the year. The initial phase of the decline in rates is likely associated with wider bond spreads. However, as the economy bounces back in 2Q spreads could tighten modestly. From technicals to fundamentals. With the disappointing ...