Archive for May, 2015

Death Cross

Tuesday, May 26th, 2015

One fully paid up subscriber and former colleagues who likes to be negative on equities reports the famous Death Cross has occurred on Dow Jones Transportation Index. On that index the 50 day moving average has broken below the 200 day moving average and that portends bad things for that ...

Overnight Preview

Tuesday, May 26th, 2015

Via Robert Sinche at Amherst Pierpont Securities: G7: The G7 Finince Ministers and Central bankers begin a 3-day meeting in Dresden, Germany. The closing Press Conference is 7:am EDT on Friday. CANADA: The BBerg consensus expects the Bank of Canada to leave its policy rate unchanged at 0.75%. CHINA: Industrial Profit data for ...

Treasury Market Update

Tuesday, May 26th, 2015

This move is a continuation of a move which began last week. Yellen in her peroration averred that if her forecast was correct the FOMC would raise rates. That should not have sparked a collective epiphany but it apparently has as the curve has flattened dramatically with the short end ...

Durable Goods Analysis

Tuesday, May 26th, 2015

Via Millan Mulraine at TDSecurities: The US economic data has started on better footing this week, and despite the expected 0.5% m/m decline in the headline number the underlying narrative offers a more very constructive outlook for investment activity. In particular, the decline in orders in April comes on the heels ...

Today’s New Issue Calendar

Tuesday, May 26th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-05-26 14:01:00.0 GMT By Allan Lopez (Bloomberg) -- 3 new issues expected to price today: * Western Gas Partners $500m (will not grow) Baa3/BBB- * * 10Y * IPT +215 area * Books: MS, USB * RPM International $250m (will not grow) Baa3/BBB * * 30Y * IPT +237.5 ...

Two Year Note Auction

Tuesday, May 26th, 2015

Via Ian Lyngen at CRT Capital: The 2-year sector is modestly lower this morning in the wake of the data, pricing in a small outright concession and underperforming the rest of the curve. We're constructive on this afternoon's auction as it's tied with Jan-Apr as the smallest 2-year size since February ...

New Home Sales and Consumer Confidence

Tuesday, May 26th, 2015

Via Stephen Stanley at Amherst Pierpont Securities: New home sales rebounded by nearly 7% in April after dipping in March.  The April pace of 517,000 is just shy of the January and February readings (521K and 538K respectively) but far ahead of the 2014 average (437K).  Much of the rise to ...

What to Watch Today

Tuesday, May 26th, 2015

Via the good folks at Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * * 8:30am: Durable Goods Orders, April, est. -0.5% (prior 4.7%) * * Durables Ex-Transportation, April, est. 0.3% (prior 0.3%) * Cap Goods Orders Non-def Ex-Air, April, est. 0.3% (prior 0.6%) * Cap Goods Ship Non-def Ex-Air, April, est. 0.3% (prior 0.9%) * 9:00am: FHFA House Price ...

FX

Tuesday, May 26th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Rallies in Asia and Europe, but may Pull Back in North America - There are two chief drivers for markets today:  comments by Fed officials and the festering situation in Greece - With the success of the anti-austerity Podemos in the local and regional elections ...

Secondary market Corporate Bond Trading

Tuesday, May 26th, 2015

Friday was the lowest volume day of trading in the corporate bond market since jan 02. Via Bloomberg: IG CREDIT: Lowest Volume Since Jan. 2; Investor Meetings Set 2015-05-26 10:01:32.652 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $6.2b Friday vs $15.5b Thursday, $11.7b the previous Friday. * Secondary IG trading ...