Archive for May, 2015

Soft Patch for Consumers

Tuesday, May 12th, 2015

Bank America is a behemoth and as a result the spending activity of its retail debit and credit card clients can provide useful information on the the consumers' mood.  The latest info shows that retail spending hit a perplexing soft patch in April. Via Merrill Lynch: Today at 6:13 AM BofA ...

FX

Tuesday, May 12th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Falls as Bond Sell-Off Continues - The unwinding of the long bonds/long US dollar position is continuing this week after it appeared to have reached climactic proportions last week - UK industrial output figures were stronger than expected - In Sweden, a soft inflation report ...

what to watch today

Tuesday, May 12th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 9:00am: NFIB Small Business Optimism, April, 96.0 (prior 95.2) * 10:00am: JOLTS Job Openings, March (prior 5.133m) * 2:00pm: Monthly Budget Statement, April, est $138b (prior $106.9b) * 2:00pm: Monthly Budget Statement, April, est $138b (prior $106.9b)</li></ul> * Central Banks * 12:45pm: Fed’s Williams speaks in New York * ...

Secondary market Corporate Bond Trading Yesterday

Tuesday, May 12th, 2015

Via Bloomberg: IG CREDIT: Recapping Secondary Trading; DPWDU, OKB Set to Price 2015-05-12 10:00:15.717 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $12.5b vs $13.6b Friday, $11.1b last Monday. * 10-DMA $15.3b * 144a trading added $2b of IG volume vs $1.7b on Friday, $1.2b last Monday * Most active issues, longer ...

Making Some Sense of Fixed Income Rout

Tuesday, May 12th, 2015

Via the FT:     Markets Insight May 12, 2015 6:18 am Welcome outbreak of sanity for bonds John Plender       Is it technical or fundamental? Postmortems on last week’s flash crash in German Bunds and the wider jump in bond yields across the developed world have revealed no consensus on the precise cause of these extreme market ...

Treasury market Update

Tuesday, May 12th, 2015

Prices of Treasury coupon securities have continued their hard descent in overnight trading as investors flee instruments which performed so well last year. The rout is global with fixed income markets globally in retreat. Early in the session the market was firm as Asian banks bought 5s 7s and 10s ...

Dudley on Rate Hikes

Tuesday, May 12th, 2015

New York Fed President Dudley stated the obvious overnight with a comment that rate hikes would mark a regime change and would precipitate some market turmoil. I guess that is why he makes the big bucks. Via Bloomberg: Although the timing is uncertain, the Federal Reserve’s first interest-rate increase since 2006 will ...

Musings on FX markets

Tuesday, May 12th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=hdb795e7,129a20a5,129a20a6&p1=136122&p2=0385df6c6581d5ca638fa671d110a1f6> FX Daily link above. I've made it back to my desk after wandering aroud the US and Scotland, but not without over-sleeping this morning. Soft Swedish CPI, a little bit of Greek optimism, a small EUR/GBP correction and on-going nerves in EMFX seem to be about ...

Overnight Preview for Tonight and Tomorrow Night

Monday, May 11th, 2015

Via RObert Sinche of Amherst Pierpont Securities: Overnight into Tuesday May 12 CHINA: Over the week ahead China will release important monetary data, with a particular focus on Aggregate Financing Activity, a measure that has been showing reduced growth, undermining the potential for strong GDP growth. INDIA: Over the week ahead India will ...

Eclectic Topics of Interest

Monday, May 11th, 2015

Via Merrill Lynch Research:   Positive correlation continues. Despite the disappointing jobs report on Friday interest rate fluctuations continue to drive credit spreads. With the Fed on schedule for liftoff in 2H this supports our view we are in an environment of higher interest rates and wider credit spreads. Interest rates moved ...