Archive for May, 2015

On the US labor Market

Monday, May 11th, 2015

Via Kit Juckes at SocGen: Kit Juckes (SOCIETE GENERALE) Today at 3:26 AM <http://www.sgresearch.com/r/?id=hdb4b33f,12947943,12947944&p1=136122&p2=84beaac20510df22b4f1a022b73bc7cc>Daily link above...Daddy - are we there yet? We'll be there soon..... Variants of this conversation happen in cars all over the world, and as the US unemployment rate falls month after month, you could forgive markets for asking ...

Pile Of Cash

Sunday, May 10th, 2015

Via the FT:     May 10, 2015 11:36 am Top 50 US boardroom hoarders sit on $1tn in cash Eric Platt in New York   Just five US companies are hoarding nearly half a trillion dollars as the country’s tax code and a tepid global economy deter businesses from spending their overseas cash piles. Apple, Microsoft, Google, ...

More on Liquidity

Sunday, May 10th, 2015

This is the Current Yield column in Barron's and it is another outlet citing declining liquidity as an amplifying force in the recent bond market downturn. Via Barron's: By Amey Stone May 9, 2015 Fixed-income investors have been conditioned to think of higher interest rates as something the Federal Reserve engineers to combat rising inflation. ...

China Cuts Rates

Sunday, May 10th, 2015

Via the WSJ: By William Kazer May 10, 2015 5:55 a.m. ET 1 COMMENTS China’s central bank said on Sunday it is cutting its benchmark interest rate, its third such move since November last year amid slowing economic growth. The People’s Bank of China said in a brief statement on its website ...

Merrill Lynch on Credit Spreads

Saturday, May 9th, 2015

Via Merrill Lynch Research: Catching our breath In terms rates risk to credit any incremental economic weakness is offset by... ...the emergence of interest rate risk from the surprisingly strong european economy. In the near term we expect supply pressures to ease to $30-35bn next week Catching our breath. There are three main takeaways from ...

Treasury Market Update

Friday, May 8th, 2015

|Dealers reported mixed flows today with real money a better seller in the 2 year sector and a better buyer in the 5 year sector. The 5 year was a superstar and the Long Bond is ready for banishment to bond Hades. The 5s 30s spread moments prior to the data ...

Fed Portfolio Reinvestment

Friday, May 8th, 2015

Via Blooomberg:   Fed’s Reinvestments May Be ‘Dominant Factor’ For Bills: Barclays 2015-05-08 16:47:25.551 GMTBy Alexandra Harris (Bloomberg) -- Fed may be able to “increase its torque over bill yields” with its portfolio of maturing securities, not RRP facility, Barclays strategist Joseph Abate writes in weekly note. * Will become the “dominant factor driving bill yields” * If Fed ...

Weekend Preview

Friday, May 8th, 2015

Via Robert Sinche at Amherst Pierpont Securities: AUSTRALIA: The NAB Business Conditions and Confidence Indexes for April will be monitored as the small March gains did little to signal any optimism about current/future growth. CHINA: Over the week ahead China will release important monetary data, with a particular focus on Aggregate Financing ...

This Week’s Corporate Bond Tally

Friday, May 8th, 2015

Via Bloomberg: IG CREDIT: Weekly Issuance Stats; Tenors, Ratings, Sectors 2015-05-08 14:57:44.566 GMT By Lisa Loray (Bloomberg) -- 26 issuers priced $54.775b in 54 tranches for the week ending May 8, the 4th time this year weekly issuance has exceeded $50b; YTD volume $639.46b. * Weekly issuance sans SAS $52.525b, YTD $546.01b * 55% of this week’s volume ...

Wholesale Inventory and GDP

Friday, May 8th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: Remember all of those consumer goods imports that showed up in the March trade deficit earlier this week?  Presumably, those goods went somewhere.  My first guess would have been warehouses and distribution centers around the country.  In other words, wholesale inventories.  Evidently, I was ...