Archive for May, 2015

Eclectic Topics Via Merrill Lynch

Thursday, May 14th, 2015

Via Merrill Lynch Researcch: Inflows to duration in high grade. Despite the sharp rise in interest rates over the last three weeks there is no sign of a slowdown in inflows to high grade funds. Outside of short-term funds inflows to high grade bond funds and ETFs rose last week to ...

What to Watch for Today

Thursday, May 14th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 8:30am: PPI Final Demand m/m, April, est. 0.1% (prior 0.2%) * * PPI Ex Food and Energy m/m, April, est. 0.1% (prior 0.2%) * PPI Ex Food, Energy, Trade m/m, April, est. 0.1% (prior 0.2%) * PPI Final Demand y/y, April, est. -0.8% (prior -0.8%) * PPI Ex-Food and ...

FX

Thursday, May 14th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Softer In The Wake of US Retail Sales - The combination of the disappointing US retail sales and small inventory build has encouraged a new bout of dollar selling - The news stream has been particularly light today and currency markets are being driven ...

Secondary market Corporate Trading Yesterday

Thursday, May 14th, 2015

Via Bloomberg: IG CREDIT: Active Issue Flows Led by Client Trades; 2 to Price 2015-05-14 09:59:01.63 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.5b vs $17.2b Tuesday, $18.1b the previous Wednesday. 10-DMA $15.4b. * 144a trading added $2.3b of IG volume vs $2.5b Tuesday, $2b last Wednesday * Most active issues, ...

Treasury market Update

Thursday, May 14th, 2015

Prices of Treasury coupon securities have pushed modestly higher in a subdued overnight session. There was a dearth of top tier economic data and the dollar continue to sag against most other currencies. The dollar weakness did bring forth some yen based buyers who observed value in the belly of ...

Morning Musings

Thursday, May 14th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=hdbe0c3d,12a41cf9,12a41cfa&p1=136122&p2=c6a5e33ccc7ce44d95485d30acfd3c55> US ‘core' retail sales growth has slowed, on a 3-month basis, to 3.9% (3.4% y/y on the month), which adjusted for inflation is around 2 ½%. Not a disaster, more a return to the trundling growth rate of 2012-2104 than anything scarier. But it is more ...

Eclectic Stuff Via Merrill Lynch

Thursday, May 14th, 2015

Via Merrill Lynch Research a smorgasbord of topics:   Twinkle, twinkle rising star. Currently the USD notional amount of high yield issuers that are candidates for an upgrade to investment grade (aka rising stars) stands at $55bn - the highest since the credit crisis. The largest rising star candidate now is GM, ...

Ten Year Auction Result

Wednesday, May 13th, 2015

This is late (my fault) but instructive as dealers won very little of this auction. Thank God for that as the secondary market price action is less than festive for sure. Via CRT Capital: *** The auction was strong with a 1.4 bp stop-through and non-dealer bidding at 81.1% vs. 66% norm ...

Atlanta Fed on Q2 GDP

Wednesday, May 13th, 2015

The Atlanta Fed has lowered its projection for Q2 GDP to 0.7 from 0.8. The revision follows the weak consumer spending data this morning. Most analysts have a negative number for Q1 as the revisions accumulate. If we assume zero then with a 0.7 for Q2 it becomes more difficult to ...

Another Article on Liquidity

Wednesday, May 13th, 2015

Via Bloomberg: Lack of Treasury Market Depth ‘Fundamental and Systemic’: CS 2015-05-13 15:47:00.512 GMT By Alexandra Harris (Bloomberg) -- Lack of market depth “more fundamental and systemic” than high frequency trading; it’s a consequence of regulations and “lack of willingness to warehouse significant interest rate risk,” Credit Suisse strategists Ira Jersey and William Marshall write in note. * Banks ...