Archive for June, 2015
Monday, June 15th, 2015
MBS has opened flat to a touch wider to Treasuries. The trader note I am reading from notes that MBS performed poorly on Friday. He thought the market has some obstacles to climb over before it can improve versus Treasuries. He noted heavy selling recently by end users, heavy selling ...
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Monday, June 15th, 2015
Via Cheng Chen at TDSecurities:
The Empire manufacturing index disappointed expectation in June, with the headline index declining to -1.98 (market consensus is 6.00) following last month’s modest gain of 3.09. The underlying details of this report were quite weak, with the weak showing in the forward looking indicators such as ...
Posted in Uncategorized | Comments Off on Weak Empire Survey
Monday, June 15th, 2015
Via Bloomberg:
IG CREDIT: AAPL, T, GOOG Led Trading; Pipeline Continues to Grow
2015-06-15 10:00:05.861 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $11.7b Friday vs $16.7b Thursday, $11.9b the previous
Friday. 10-DMA $14.9b; 10-Friday moving average $11.5b.
* 144a trading added $2.1b of IG volume Friday vs $2.5b
Thursday, $1.4b ...
Posted in Uncategorized | Comments Off on Secondary market Trading of Corporate Bonds on Friday
Monday, June 15th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Dollar Gains Limited Despite Greek Talk Failure and FOMC Looming
The US dollar began the new week bid in Asia, but surrendered most of those initial gains before the start of the European session. The lack of fresh news has seen the greenback drift ...
Posted in Uncategorized | Comments Off on FX
Monday, June 15th, 2015
I watch the spread between 10 year Spain and 10 year USas a barometer of peripheral spreads. That spread today has Spain a basis point rich to US in the 10 year sector. As recently as May 20th the spread was 49 basis points. So a huge reversal in Spain ...
Posted in Uncategorized | Comments Off on Peripheral Spreads
Monday, June 15th, 2015
Dealers who are kind enough to report flows to me did not report much in the way of activity. I have heard of Asian end users selling 3s and 5s and central banks selling 10s.
In early trading there was much more of a flight to quality bid on the deterioration ...
Posted in Uncategorized | Comments Off on Overnight Flows
Monday, June 15th, 2015
This is the most recent update from the FT on the negotiations to solve the latest Greece crisis. Someone once told me that the two motivating emotions in markets are greed and fear. At the moment fear is ascendant in Greece. The article notes that equities are down 7 percent ...
Posted in Uncategorized | Comments Off on Greek Tragedy
Monday, June 15th, 2015
Via Kit Juckes at SocGen:
<http://www.sgresearch.com/r/?id=hdf778af,12fea6fb,12fea6fc&p1=136122&p2=bae11c21b0a121f2f5aa85c237167775>
The yen and euro are both undervalued relative to long-term models of purchasing parity or fundamental economic equilibrium. That's not surprising because what matters these days is monetary policy divergence, rather than 'value'. But the yen's a lot more undervalued than the euro and the tide ...
Posted in Uncategorized | Comments Off on Early FX Musings
Monday, June 15th, 2015
It seems that hardly a day passes without an article or story on declining liquidity. In this story the FT reports that FINRA on June 18th will meet with large dealers and large buy side clients to discuss possible solution. One proposed solution is to delay reporting of large block ...
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Sunday, June 14th, 2015
He does not break any new ground here but it is an interesting article about the dilemmas the FOMC faces in communicating its policy objectives.
Via Jon Hilsenrath at the WSJ:
By Jon Hilsenrath
June 14, 2015 2:38 p.m. ET
Federal Reserve officials face a communications challenge as they tiptoe toward raising short-term interest ...
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