Archive for April, 2015

Barclay’s Index Extensions

Tuesday, April 21st, 2015

Via a fully paid up subscriber: RATES: Barclays Projects Index Duration Changes for May 1 13:53 Barclays estimated the following duration extensions for May 1 as of April 20: • U.S. Treasury: 0.09yrs • U.S. Agency: 0.05yrs • U.S. Credit: 0.07yrs • U.S. Govt/Credit: 0.08yrs • U.S. MBS: 0.06yrs • U.S. Aggregate: 0.08yrs • U.S. High Yield: 0.10yrs

Today’s New Issue Calendar

Tuesday, April 21st, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-04-21 14:01:08.702 GMT By Allan Lopez (Bloomberg) -- The following is a list of new issues expected to price today: * Sinopec Group Overseas Development $benchmark Aa3/AA- * 5Y, 10Y, 30Y; 144A/Reg S * Denoms: $200k x $1k * 5Y final guidance +130, +/- 5 ...

Musings on the Upcoming Cycle of Rate Hikes

Tuesday, April 21st, 2015

Via Bloomberg: Fed’s 7Y Stretch of Low Rates Replaced by Fear of Raising Them 2015-04-21 14:37:20.727 GMT By Vivien Lou Chen (Bloomberg) -- Fed’s “patient” stance on raising rates is being supplanted by fear over start of 1st tightening cycle since 2004-2006, according to Credit Agricole strategist David Keeble and Thomas di Galoma, ED&F Man’s head of ...

Negative Euribor

Tuesday, April 21st, 2015

Via Bloomberg: Banks Get Paid to Borrow as Three-Month Euribor Drops Below Zero 2015-04-21 09:12:00.229 GMT By Anchalee Worrachate (Bloomberg) -- Banks in the euro area can now get paid to look after each others’ cash for three months as the European Central Bank’s bond-buying program floods the region’s money markets with excess liquidity. The euro interbank offered ...

FX

Tuesday, April 21st, 2015

Via Marc Chandler at Brown Brothers Harriman: Within Ranges, Dollar Firms - NY Fed President Dudley reaffirmed the idea that the Federal Reserve has a tightening bias - We think a strong US employment report in early May could spur a sharp swing in the pendulum of expectations for a Fed hike, catching ...

What to Watch Today: Very Little

Tuesday, April 21st, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * No data * No data</li></ul> * Supply * 11:30am: U.S. to sell $30b 4W bills

Doctors and Dentists Flock to TIPS

Monday, April 20th, 2015

Steve Liddy is a good friend and former colleague and assiduous observer of the marketplace. He sends along this Bloomberg story on retail piling into TIPS funds. Via Bloomberg: Inflation-Linked ETF Attracts Most Cash Ever as Prices Pick Up 2015-04-20 21:16:01.160 GMT By Alexandra Scaggs (Bloomberg) -- Investors are betting on higher inflation, and sending more ...

Overnight Preview

Monday, April 20th, 2015

Via Robert Sinche of Amherst Pierpont Securities: Chinese Premier Xi Jinping and Japanese PM Abe to both speak at a conference in Indonesia, speeches that may provide new information about the tensions over territorial disputes. AUSTRALIA: Minutes of the April Meeting of the RBA may shed light on the potential for additional ...

Corporate Bond Issuance Today

Monday, April 20th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-04-20 14:01:00.11 GMT By Allan Lopez (Bloomberg) -- The following is a list of new issues expected to price today: * Southern Copper $benchmark Baa2/BBB * 10Y, 30Y * IPT 10Y +240 area, 30Y +365 area * Books: BofAML, CS, HSBC, MS, UBS * Books: BofAML, ...

China Property Developer Defaults

Monday, April 20th, 2015

I saw this this morning on Bloomberg TV while I was on the elliptical machine and it does not seem as though it is generating much discussion.  In the article it sounds as though this is a bit of a one off but the article does make the point that ...