Archive for May, 2015

FX

Thursday, May 28th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Turns Mixed, Chinese Shares Tumble The US dollar is mixed after making new multi-year highs against the yen near JPY124.30 in Asia, while month-end positioning appears to have helped fuel an extension of the euro's recovery that began in the North America yesterday.  ...

China Stocks Plunge

Thursday, May 28th, 2015

Via Bloomberg: Chinese stocks plunged the most in four months on record turnover as brokerages tightened lending restrictions and the central bank drained cash from the financial system. The Shanghai Composite Index tumbled 6.5 percent to 4,620.27 at the close, dragged down by financial and commodity companies. Citic Securities Co., the biggest-listed ...

Secondary market Corporate Bond Trading Yesterday

Thursday, May 28th, 2015

Via Bloomberg: IG CREDIT: Trading Volume Improves; FINNVE Expected to Price 2015-05-28 10:01:14.596 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.8b vs $12.7b Tuesday, $15.6b last Wednesday. * 10-DMA $14.0b * 144a trading added $2.8b of IG volume vs $1.9b on Tuesday, $3.1b last Wednesday * Most active issues longer than ...

Musings on FX

Thursday, May 28th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=hdd5a230,12c9e912,12c9e913&p1=136122&p2=cb9f9de425cf825abcbb1184a07cda2a>                                                    The title's self-evident really. An a quiet day approaching month-end, EUR/USD 'should' bounce but if it doesn't, 1.0650 is the ...

Overnight Treasury market Flows

Thursday, May 28th, 2015

Japan based asset managers bought Long Bonds. That same group sold 10s. Asian banks and European banks bought 10s. Asian asset managers bought spread product which motivated dealer buying of 7s and 10s.There were eclectic sellers of 2s and one dealer noted a very large forward roller into the new ...

Mont End Extensions

Thursday, May 28th, 2015

Via a Fully Paid Up Subscriber: MONTH-END EXTENSIONS: Barclays final month end extensions vs prelim for June 1: - US Tsys +0.14 vs +0.13 yrs prelim - Agencies: +0.08 yrs vs +0.07 yrs in prelim - Credit: +0.10 yrs vs +0.09 yrs in prelim - Govt/Credit: +0.13 yrs vs +0.12 yrs in prelim - MBS: +0.11 ...

Five Year Note Auction

Wednesday, May 27th, 2015

Via Ian Lyngen at CRT Capital: We are apprehensive about this afternoon's 5-year auction as the sector has recently underperformed the long-end of the curve. On the other hand, with the WI suggesting the highest yield for a new 5-year since Dec, we're cognizant that could prove an incentive to bid ...

Swap Market Commentary: Excellent Read

Wednesday, May 27th, 2015

This commentary is from a market maker in the swaps market and is an excellent post on what drives the market currently and on the unintended consequences of the grotesque piece of legislation known as Dodd Frank.  With the permission of the author (who requests anonymity) I edited out a ...

JPMorgan Duration Survey

Wednesday, May 27th, 2015

Via Bloomberg: RATES: Shorts Fall in Latest JPM Survey 2015-05-27 12:07:31.887 GMT By Robert Elson (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended May 26 vs weeks ended May 18, 11. * Longs 11 vs 9 vs 9 * Neutrals 65 vs 63 vs 58 * Shorts 24 vs 28 vs 33 * Net longs -13 ...

What to Watch Today

Wednesday, May 27th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 7:00am: MBA Mortgage Applications, May 22 (prior -1.5%) * Central Banks * * G-7 finance ministers and central bankers meet in Dresden, Germany * 10:00am: Bank of Canada seen keeping overnight lending rate at 0.75% * Supply * * 11:30am: U.S. to sell $25b 1Y bills, $45b 4W bills * ...