Archive for May, 2015

What to Watch Today

Monday, May 18th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 10:00am: NAHB Housing Market Index, May, est. 57 (prior 56) * Central Banks * * 9:30pm: Reserve Bank of Australia releases May meeting minutes * Supply * * 11:00am: U.S. to announce plans for auction of 4W bills * 11:30am: U.S. to sell $24b 3M bills, $24b 6M bills

FX

Monday, May 18th, 2015

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead - The dollar bullish divergence story appears to have hit a wall - The recent pattern in the market is for the dollar to be sold on disappointing news, but does not rally on better data - The UK reports April inflation ...

Treasury Market Update

Monday, May 18th, 2015

Prices of Treasury coupon securities have posted modest losses in a very quiet overnight session. The yield curve has steepened with 5s 10s at 69.1 versus 68.4 at the close on Friday. Similarly, 5s 30s has widened to 148.3 from 146.9 and 10s 30s has steepened to 79.2 from 78.5. ...

Secondary market Trading of Corporates on Friday

Monday, May 18th, 2015

Via Bloomberg: IG CREDIT: Client Flows in Long Bonds Led Volume; WSTP to Price 2015-05-18 09:58:03.322 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $11.7b Friday vs $14.5b Thursday, $13.6b the previous Friday. 10-DMA $15.2b. * 144a trading added $1.6b of IG volume Friday vs $2.6b Thursday, $1.7b last Friday * Most ...

Divergent Monetary Policies

Sunday, May 17th, 2015

Via the FT: Since the global financial crisis, mankind has learnt to live with a third certainty along with death and taxes — monetary loosening. Central banks have slashed interest rates to record lows and embarked upon unprecedented programmes of asset purchases in an attempt to raise inflation and restart economic growth. The ...

Property Prices Steady in China (For a Month)

Sunday, May 17th, 2015

Property prices in China were steady month over month in April but are down 6.1 percent year on year. I can not get the graph from the FT to reproduce here but it looks like the downhill at Innsbruck. Via the FT: A tentative sign of stability in China's property market: the ...

Creeping Pessimism

Sunday, May 17th, 2015

This was out Friday but is worthwhile reading as Pedro Nicolai Da Costa of the WSJ reports on fading optimism on a robust recovery from the winter soft patch. At this juncture no one is forecasting anything dire but hopes that the economy will attain a growth rate of 3 ...

Hilsenrath Article : Flummoxed Fed

Friday, May 15th, 2015

Via Jon Hilsenrath at the WSJ: weak data show how sluggish economy remains prone to shocks By JON HILSENRATH Updated May 15, 2015 6:32 p.m. ET 37 COMMENTS A slew of recent soft economic data has fueled fresh expectations of dimmer U.S. growth, underscoring the already-anemic economy’s unusual vulnerability to even fleeting shocks. This softness—with output possibly ...

Consumer Confidence

Friday, May 15th, 2015

* MICHIGAN U.S. CONSUMER SENTIMENT AT 88.6 IN MAY AFTER 95.9 * MICHIGAN U.S. SENTIMENT INDEX DROPS TO LOWEST IN SEVEN MONTHS * 5-YEAR INFLATION EXPECTATIONS AT 2.8% AFTER 2.6% * 1-YEAR INFLATION EXPECTATIONS AT 2.9% AFTER 2.6% * CURRENT CONDITIONS INDEX AT 99.8 IN MAY AFTER 107 * FUTURE CONDITIONS INDEX AT 81.5 IN ...

Industrial Production

Friday, May 15th, 2015

Via Millan Mulraine at TDSecurities: The US data flow today continues to point to subdued growth momentum in the US economy, with industrial production declining surprisingly in April. During the month industrial sector activity declined for the fifth consecutive month, with the headline index falling 0.3% m/m. This was a worse ...