Archive for May, 2015
Wednesday, May 13th, 2015
Via CRT Capital:
We are cautiously optimistic about this afternoon's 10-year auction and while we expect non-dealer interest to be significant (average is 66% for this benchmark's refundings), there is still the risk of an outsized overseas bid as yields have backed up enough to bring in otherwise sidelined bidders. Despite ...
Posted in Uncategorized | Comments Off on Ten Year Auction Preview
Wednesday, May 13th, 2015
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2015-05-13 14:01:00.0 GMT
By Allan Lopez
(Bloomberg) -- The following is a list of new issues
expected to price today:
* Qualcomm $benchmark A1/A+
* 3Y fxd and/or FRN, 5Y fxd and/or FRN, 7Y, 10Y, 20Y, 30Y
* IPT:
* 3y fxd +60 area, 3Y ...
Posted in Uncategorized | Comments Off on New Issues Expected To Price Today
Wednesday, May 13th, 2015
The curve has steepened since I wrote at 530AM with weak data and supply guiding the price action. The 5s 30s spread has widened to 146.5 from 145.7. The 10s 30s spread has widened to 77.4 from 77.2. The 2s 5s 10s spread is unchanged at 27.
One dealer reports huge ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Wednesday, May 13th, 2015
Via Millan Mulraine at TDSecurities:
The April retail sales report fell well short of expectation, and the subdued spending performance points to sustained weakness in consumption activity despite some modest upward revisions to the performance in March. In essence, the report offered no evidence to suggest that spending momentum has rebounded ...
Posted in Uncategorized | Comments Off on Weak Consumer Spending
Wednesday, May 13th, 2015
The NYTimes Upshot has posting an interesting (to me) story on the $179 million sale of a Picasso yesterday. The basis of the story is that rising income inequality made that fantastic price possible.
Via the NYTimes Upshot:
We don’t yet know who agreed to pay $179.4 million for a Picasso in ...
Posted in Uncategorized | Comments Off on Picasso and Piketty Intersect
Wednesday, May 13th, 2015
Prices of Treasury coupon securities have registered small mixed changes in a session which was quite placid and pacific when vied against the frantic and desperate trading of recent days. In this session the front end is a tad weaker than it was when I marked prices last evening at ...
Posted in Uncategorized | Comments Off on Treasury Market Update
Wednesday, May 13th, 2015
Via Kit Juckes at SocGen:
<http://www.sgresearch.com/r/?id=hdba584d,129e8ad1,129e8ad2&p1=136122&p2=e68cd0fb0ecbd792c882bc4a0688a8d0>
We're looking for decent US data today. The weather improved in April. But I'll put the title as a question because if you subscribe to the view that the debt cycle has reached the point where ratoinal people are trying to spend less and pay down ...
Posted in Uncategorized | Comments Off on Macroeconomic Musings
Wednesday, May 13th, 2015
Via Bloomberg:
Bond Rout Deepens to $433 Billion as Bull Positions Unwound (2)
2015-05-13 05:24:13.370 GMT
(Updates Treasuries price in sixth paragraph.)
By Cordell Eddings
(Bloomberg) -- Losses from the worst global debt-market
slump in two years deepened to $433 billion as investors begin
to ponder how far up yields will climb before stabilizing.
The value of the ...
Posted in Uncategorized | Comments Off on Counting Losses
Tuesday, May 12th, 2015
The WSJ presents a nice recapitulation of legislative efforts to reform the Fed.
Via the WSJ:
Chairwoman Janet Yellen and other Federal Reserve leaders haven’t exactly welcomed the idea of overhauling the central bank. But many of the proposals that most raised their hackles didn’t make it into draft legislation unveiled Tuesday ...
Posted in Uncategorized | 1 Comment »
Tuesday, May 12th, 2015
Via Merrill Lynch Research:
1Q earnings flat on oil, dollar. With over 90% of US public high grade issuers (by bond market value) having reported their 1Q results we estimate that the earnings growth for the quarter was close to flat (-0.3%), with sales down 3.5% YoY (see full report for ...
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