Archive for May, 2015

End of Day Excerpt

Tuesday, May 19th, 2015

Excerpt from end of day note by David Ader at CRT Capital: The Treasury market came in with a solid bid from the overnight session in which it was revealed that the ECB plans to frontload QE purchases before the summer vacation season to avoid a notoriously low-liquidity period of the ...

Overnight Preview

Tuesday, May 19th, 2015

Via Robert Sinche at Amherst Pierpont Securities: MINUTES…of recent Meetings will be released by the BoE (May 7-8 meeting) and the FOMC (April 29 meeting). AUSTRALIA: April data on Skilled Vacancies and May data on Consumer Confidence…both of which have been stagnant in recent months after declines during much of 2014. JAPAN: The ...

Excellent Commentary on Swap Spreads

Tuesday, May 19th, 2015

Via a fully paid up subscriber: Swap spreads racing lower again this week as the pipeline of issuance is growing not slowing.  Entering May there was some belief that IG supply, especially from financials, would slow allowing swap spreads to grind wider.  Financials typically lock up long term capital and then ...

Heavy Corporate Slate Again Today

Tuesday, May 19th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-05-19 14:02:21.675 GMT By Allan Lopez (Bloomberg) -- 9 new issues expected to price today: * Comcast $benchmark A3/A- * 10Y, 20Y, 30Y * IPT 10Y +120-125, 20Y +140-145, 30Y +160-165 * Books: C, GS, MS * Books: C, GS, MS</li></ul> * Columbia Pipeline Group $2.75b ...

JPMorgan Duration Survey

Tuesday, May 19th, 2015

Via Bloomberg: CORRECT: Shorts Fall in Latest JPM Survey 2015-05-19 12:38:12.803 GMT By Monika Grabek (Bloomberg) -- (Corrects direction of move in headline.) * The JPMorgan Treasury Client Survey for the week ended May 18 vs weeks ended May 11, May 4 * Longs 9 vs 9 vs 11 * Neutrals 63 vs 58 vs 56 * Shorts 28 ...

Housing Starts

Tuesday, May 19th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: After a disastrous February for housing starts, which everyone presumed was weather-related, there was widespread hope for a sharp rebound in March.  The March tally, while up from February, was grossly disappointing.  As it turns out, we just needed to be a little patient, ...

Treasury Market Update

Tuesday, May 19th, 2015

One Treasury trader in a note on the market said that prices are "cascading" lower. (He must have attended a very fine high school to have used a word like that.) The 5year note is through the 200 day moving average at 1.54 and both 10s and bonds have broken ...

What to Watch Today

Tuesday, May 19th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 8:30am: Housing Starts, April, est. 1.015m (prior 0.926m) * * Housing starts m/m, April, est. 9.6% (prior 2.0%) * Building Permits, April, est. 1.064m (prior 1.042m) * Building Permits m/m, April, est. 2.1% (prior -5.4%) * Central Banks * * 11:30am: Bank of Canada’s Poloz speaks in Charlottetown, Prince ...

Treasury Market Update

Tuesday, May 19th, 2015

The Treasury market enjoyed a nice bounce overnight as the Coeure comments motivated Bund buying which leaked into Treasuries. Dealers report central bank buying on 10s, real money in Japan buying 7s and 10s, central bank short covering in 5s, and real money extending from 7s to 10s.

Coeure Comments

Tuesday, May 19th, 2015

Comments by ECB Board member Coeure have moved the markets overnight. He stated that the ECB would front load purchases as the late summer holiday season would reduce liquidity and make the ECB job more difficult. Here is a WSJ story with an excellent recap: By Josie Cox The euro slumped against the ...