Archive for June, 2015

FX

Tuesday, June 16th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Bounces Back, but Still Seems Fragile The US dollar has come back better bid after initially extending yesterday's pullback.  The euro pushed to $1.1330 after having dipped briefly below $1.1200 yesterday.   However, despite what appears to be an approaching brink with Greece, a ...

What to Watch Today

Tuesday, June 16th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Housing Starts, May, est. 1.09m (prior 1.135m) * * Housing Starts m/m, May, est. -4.0% (prior 20.2%) * Building Permits, May, est. 1.1m (prior 1.143m, revised 1.140m) * Building Permits m/m, May, est. -3.5% (prior 10.1%, prior 9.8%) * Central Banks * * Federal Open Market Committee meeting ...

Possible Eurozone Summit on Greece

Tuesday, June 16th, 2015

Via the FT: Eurozone officials discuss holding emergency summit on Greece Peter Spiegel in Brussels, Stefan Wagstyl in Berlin and Kadhim Shubber in London Eurozone officials are discussing holding an emergency summit on Sunday for leaders to tackle the crisis in Greece amid mounting fears a deal to break an ongoing impasse ...

Secondary market Corporate Bond Trading Yesterday

Tuesday, June 16th, 2015

Via Bloomberg: IG CREDIT: GS Long Bonds Led Trading on Client Flows; 3 to Price 2015-06-16 10:02:31.790 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $12.4b vs $11.7b Friday, $11.2b the previous Monday. * 10-DMA $14.8b * 144a trading added $1.8b of IG volume vs $2.1b on Friday, $1.8b last Monday * ...

China Bubble

Tuesday, June 16th, 2015

The Shanghai Composite dropped 3.5 percent in the overnight session. I was searching for reasons on the world wide web and in searching found this little gem in a Bloomberg story. Via Bloomberg: The Shanghai Composite Index slid 3.5 percent. After China’s biggest stock gauge more-than doubled in the last 12 months, ...

Early Morning FX Musings

Tuesday, June 16th, 2015

Kit Juckes comments on the relative resiliency of the Euro in spite of the crisis in Greece. He does note that options vols are at their richest levels since December 2011. Via Kut Juckes at SocGen: <http://www.sgresearch.com/r/?id=hdfa4d29,130300f7,130300f8&p1=136122&p2=813e279bbce331633033261b68881ddd> The main topic in currency markets may be the resilience of the euro. Buffeted by the ...

Overnight Flows

Tuesday, June 16th, 2015

Dealers report light activity in the overnight session. The only noteworthy activity has been central bank selling in 2s and 3s and bank portfolios selling shorter than 2 year coupons.

More on Flight to Quality

Tuesday, June 16th, 2015

I noted yesterday morning that I track 10 year Spain versus 10 year US. That spread was practically even around this time yesterday. As I compose this electronic missive that spread now shows Spain 11 basis points cheap to US. I do not have Bloomberg but in reviewing my overflowing ...

Flight to Quality

Tuesday, June 16th, 2015

Via the FT: MarketsFrench spreads rocket to 15 month high 19 minutes ago URL Twitter And we're not talking about pâté. The gap in yields between French and German 10-year bonds has almost doubled in the last three trading days, after months of stability while the two bonds moved pretty much in lockstep, writes Joel Lewin. It's ...

Draghi Vindicated

Tuesday, June 16th, 2015

The European Unions highest Court has given its imprimatur to the Outright Monetary Transactions engaged in by the ECB over the last several years. Via Bloomberg: The European Central Bank’s 2012 bond-buying program won the backing of the European Union’s highest court, expanding Mario Draghi’s crisis-fighting arsenal. The EU Court of Justice, in ...