Archive for May, 2015

What to Watch Today (Via Bloomberg)

Tuesday, May 5th, 2015

WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Trade Balance, March, est. -$40.1b (prior - $35.4b) * 9:45am: Markit US Composite PMI, April final (prior 57.4) * Markit US Services PMI, April final, est. 57.8 (prior 57.8) * Markit US Services PMI, April final, est. 57.8 (prior 57.8)</li></ul> * 10:00am: IBD/TIPP Economic Optimism, May, est. 50.3 (prior ...

Res Ipsa Loquitur

Tuesday, May 5th, 2015

Via the WSJ: By Karen Leigh and Dana Ballout May 5, 2015 5:25 a.m. ET 20 COMMENTS BEIRUT—Islamic State has claimed responsibility for Sunday’s armed attack on an art fair in Texas that featured cartoons of the Prophet Muhammad. The radical Islamist group said in a broadcast on its official radio station that two of its ...

200 Day Moving Average

Tuesday, May 5th, 2015

In my previous post on FX by Marc Chandler he notes that the 200 day moving average on the 10 year note should provide important support for that benchmark issue. He reports that the moving average today is 2.19 and that the 10 year yield has remained below that level ...

FX

Tuesday, May 5th, 2015

Via Marc Chandler at Brown Brothers Harriman: RBA Cuts But Aussie Higher - The Reserve Bank of Australia delivered a 25 bp rate cut but signalled in its statement that it has returned to a wait and see mode - The UK reported a poor construction PMI - While the EU revised its growth ...

Ambling to Superpower Status

Tuesday, May 5th, 2015

For many years the British pound ruled the world and the UK was the world's superpower. Following the Civil War the US was a nascent global power but did not fully achieve that status until World War 1 when it financed the actions of UK and France and eventually we ...

Secondary Market Trading of Corporate Bonds Yesterday

Tuesday, May 5th, 2015

Via Bloomberg: IG CREDIT: Long Bonds Most Active; ABBV M&A Deal Possible Today 2015-05-05 09:58:24.146 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $11.1b vs $10.6b Friday, $13.7b last Monday. 10-DMA $14.6b. * 10-Monday moving avg was $12.4b yday, 12th highest since Jan. 2005, more than on 98% of the Mondays ...

FX Musings Via Kit Juckes

Tuesday, May 5th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=hda4ef46,127ecec7,127ecec8&p1=136122&p2=6d035351b15089e7cb90f34350efdc7b> Good morning. FX daily link above. And attached, a picture of the 9-day EUR/USDrsi which has flipped from dramatically oversold, to dramatically overbought and is now trading down and throwing up a sell signal, at least to my very ill-edicated eyes. I don't want to sell ...

Merrill Lynch Research on Diverse Topics

Monday, May 4th, 2015

Via Merrill Lynch Research: 1994, 2004, 2015 We remain strategically underweight high grade corporate credit. We also remain concerned that the heavy May new issue pipeline will prove... ...difficult for the market to digest amidst renewed concerns about interest rate risk. uw HG. We remain strategically underweight high grade corporate credit. We also remain concerned ...

Above Reproach

Monday, May 4th, 2015

I read the Shakespeare account of Julius Caesar about 50 years ago when I was a high school freshman ( one year behind Fox talking head Bill O Reilly) and always recall the statement that Caesar's wife must be above reproach. (I Googled that because I have killed alot of ...

China Internal Migration Slowing

Monday, May 4th, 2015

Manufacturing inexorable seeks the place which will produce goods at the lowest cost. That was part of what fueled America's rise to industrial powerhouse in the late 19th and early 20th centuries as the migration from Europe to this country provided manufacturers with a pool of labor which they were ...