Archive for June, 2015

Early FX Musings

Tuesday, June 30th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=he11ad31,132793ef,132793f0&p1=136122&p2=910fe4c106b49a36095677ecd1773f35> The euro is a capricious currency, happy to laugh in the face of those (us included) who thought the fall to EUR/USD 1.10 yesterday was just a stepping-stone en route to a lower level. The bounce may be the effect of overwhelming bearishness that has exhausted ...

Wage Pressures

Monday, June 29th, 2015

Via Politico.com: President Barack Obama will this week release a long-awaited overtime rule aimed at raising wages for 5 million people as soon as 2016, according to sources familiar with the plans. The proposed rule will more than double the salary level under which virtually all workers qualify for overtime pay whenever ...

Watch Vix

Monday, June 29th, 2015

Via Steve Liddy and JJJ apologizes to Steve and readers for the way the graph looks. This is a low rent free blog . Lately I've been won't to point out the complacency, represented by the VIX, the equity market was illustrating. Indeed, even if you look at the high/low during ...

Hilsenrath on Greek Tragedy and FOMC

Monday, June 29th, 2015

Via Jon Hilsenrath at the WSJ: By Jon Hilsenrath June 29, 2015 5:50 p.m. ET A wave of financial turbulence overseas could delay the Federal Reserve’s plans to raise short-term interest rates in the months ahead, but only if it ends up knocking the U.S. economy off track. Fed officials signaled after their ...

Aging Baby Boomer Alert

Monday, June 29th, 2015

The NYTimes reports that the bass player for the Progressive Rock band Yes, Chris Squire, has died at the age of 67. He was with the band since its inception in the late 1960. This is not a band which I followed closely back in the day but I did ...

Merrill Lynch on Credit Spreads and Other Stuff

Monday, June 29th, 2015

Via Merrill Lynch Research: Greece vs. rates vs. supply. With Greece surprisingly calling a referendum on the program offered by the lenders, and promising to campaign against it, risk assets sold off globally and Treasuries and bunds rallied. As our European colleagues argue, it is difficult to imagine a near term ...

End of Month and the Long Bond

Monday, June 29th, 2015

Via my friend and former colleague Steve Liddy: Now, what’s going on with Greece is certainly influencing price action, so take this simply at face value: looking at the previous 5 month end trades this year, LB yields have averaged 39.75bp sell offs after the month end trade, before any significant ...

End of Day

Monday, June 29th, 2015

Excerpt from end of day note of ian Lyngen at CRT Capital: Treasuries were well bid throughout Monday's session with the Greek story remaining the largest influence during an otherwise lackluster day in terms of domestic data or other developments. The saga will continue to dominate the risk-on/risk-off dynamic that is ...

Nascent Superpower Opines on Greece

Monday, June 29th, 2015

Via Bloomberg: BFW 06/29 17:29 Li Says China Would Like to See United Europe, Strong Euro BFW 06/29 17:18 Li: China to Submit Climate Contribution Plan to UN This Month BFW 06/29 17:35 MORE: Li: China to Submit Climate Contribution Plan This Month BFW 06/29 17:26 *LI SAYS CHINA WOULD LIKE TO SEE UNITED ...

Overnight Data Preview

Monday, June 29th, 2015

Via Robert Sinche at Amherst Pierpont Securities: June 30 marks the expiration of the 3-month extension of the EU support program for Greece, date for the Greece €1.5bn payment to the IMF and end of the charter for the US Export-Import Bank. AUSTRALIA: The BBerg consensus expects Private Sector Credit growth to ...