Archive for May, 2015

Treasury Refunding Announcement

Wednesday, May 6th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: There are two main points to cover from the Treasury’s refunding announcement this morning. First, the broad fiscal and financing outlooks are quite stable.  Treasury confirmed that it “intends to maintain coupon issuance sizes at current levels over the upcoming quarter.”  That includes a steady ...

New Issue Corporates Scheduled For Today

Wednesday, May 6th, 2015

Via Bloomberg: G CREDIT: List of New Issues Expected to Price in U.S. Today 2015-05-06 14:01:47.513 GMT By Allan Lopez (Bloomberg) -- The following is a list of new issues expected to price today: * Apple $benchmark Aa1/AA+ * 2Y fxd and/or FRN, 5Y fxd and/or FRN, 7Y, 10Y, 30Y * IPT: * 2Y fxd +40 area, 2Y FRN ...

Productivity Dissected

Wednesday, May 6th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: Nonfarm business productivity fell at a 1.9% annualized clip in Q1, roughly in line with expectations.  It stands to reason that when output is flat and hours worked are rising, productivity would decline, and this is exactly what happened in Q1.  Presumably, GDP growth ...

Treasury Yield markers

Wednesday, May 6th, 2015

Via Bloomberg: TREASURY YIELD OUTLOOK * Benchmark yields rose yday after unexpected increase in April ISM Non-Manufacturing Composite to highest since last year’s peak, and amid steeper increases in core EGB yields * 10Y yield rose as much as 5.4bps to 2.198%, topping its 200- DMA for first time since September; it closed at highest level since ...

what to watch today

Wednesday, May 6th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 7:00am: MBA Mortgage Applications, May 1 (prior -2.3%) * 8:15am: ADP Employment Change, April, est. 200k (prior 189k) * 8:30am: Nonfarm Productivity, 1Q P, est. -1.9% (prior -2.2%) * Unit Labor Costs, 1Q P, est. 4.5% (prior 4.1%) * Unit Labor Costs, 1Q P, est. 4.5% ...

FX

Wednesday, May 6th, 2015

Via Marc Chandler at Brown Brothers Harriman: Will a Strong ADP Report Stabilize the Dollar? - US ADP data is today’s main risk event for the dollar - Evidence that the eurozone recovery in Q1 is continuing into Q2 can be found in the PMI data - The UK election is tomorrow and participants ...

Corporate Bond Trading Yesterday

Wednesday, May 6th, 2015

Via Bloomberg: IG CREDIT: Volume Rises; 3 Names Set to Price; Pipeline Grows 2015-05-06 10:17:46.786 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.3b vs $11.1b Monday, $17b last Tuesday. 10-DMA $14.8b. * 144a trading added $2.2b of IG volume vs $1.2b on Monday, $2b last Tuesday * Most active issues: * ACT ...

Nuts (Pistachios) To You

Wednesday, May 6th, 2015

Via Bloomberg: Iran is ready to return to the global commodities market, flooding it with fresh supplies and risking a slump in prices. Oil? Possibly, but there’s a second industry that could be even more disrupted by a nuclear pact between Iran and the west: pistachio nuts. Iran has far more clout in ...

Kocherlakota : Dont Raise Rates Until 2016

Wednesday, May 6th, 2015

Via Reuters: Markets | Tue May 5, 2015 8:08pm EDT Fed's Kocherlakota again says Fed should not hike rates until 2016 (Reuters) - The Federal Reserve should not raise interest rates until at least next year, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said on Tuesday. Kocherlakota, in remarks prepared for delivery ...

UK Election Primer

Wednesday, May 6th, 2015

I am not quite sure of the source of this but it is a primer on the UK election and presents the thoughts of several investment banks on that event. Via a fully paid up subscriber: Election update: Bank thoughts and trade recommendations Most recent UK polls show: YouGov/Sun - Conservatives 34%, Labour 34% Daily ...