Archive for June, 2015

PPI Analysis

Friday, June 12th, 2015

Via Millan Mulraine of TDSecurities: The pace of producer prices accelerated in May to +0.5% m/m. This was ahead of the market consensus for a slightly more modest 0.4% m/m advance, and it marks a stark reversal following last month's 0.4% m/m decline. The strong 5.9% rise in energy prices was ...

Secondary market Trading of Corporate Bonds

Friday, June 12th, 2015

Via Bloomberg: IG CREDIT: Volume Remains High; Kraft Heinz Meetings Next Week 2015-06-12 09:55:25.384 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.7b vs $16.4b Wednesday, $15.7b the previous Thursday. 10-DMA $15.4b; 10-Thursday moving avg $15.8b. * 144a trading added $2.5b of IG volume vs $3b on Wednesday, $2.6b last Thursday * ...

Greece Headlines

Friday, June 12th, 2015

Via a fully paid up subscriber: * IMF HASN’T BROKEN OFF GREECE TALKS, JAEGER SAYS-- Germany Doesn’t See That IMF Aborted Greece Talks: Jaeger By Birgit Jennen (Bloomberg) -- Departure of IMF negotiating team from Brussels may have had “many reasons” but Germany does not interpret the move as aborting the talks, ...

FX

Friday, June 12th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Remains Bid The US dollar is set to close the week on a strong note.  The relatively constructive data is boosting confidence that the Federal Reserve will have the opportunity it  has been looking for to begin, however gradual, the normalization of monetary ...

Germans Want Greece Out of Euro

Friday, June 12th, 2015

According to a poll conducted by a German broadcast company 51 percent of the German public would prefer a Greed exit from the Euro.In addition,the poll finds that the German public would take a hardline stance and offer no more concessions to the Greeks. Via Business Insider: A small majority of Germans ...

Some Overnight Flows

Friday, June 12th, 2015

Dealers report Asian bank selling in 10 year sector. Spread product based clients sold in the 3 year sector. Real money flocked to the 2 year note from very short coupon sector.

Ms Merkel Opines the Euro “too strong”

Friday, June 12th, 2015

Via the FT: German chancellor Angela Merkel just bemoaned the euro for being too strong. Accordingly, it is now less strong. The currency is now 0.84 per cent lower on the day against the dollar after Mrs Merkel said, according to Bloomberg, that an overly strong euro "makes reforms harder in Spain ...

Greek Financial markets in Turmoil

Friday, June 12th, 2015

Via the FT: Financial stocks were the biggest fallers on the Athens General index on Friday and investors also dumped Greek government debt after the International Monetary Fund walked away from the latest round of bailout talks. The selling came amid evaporating optimism that Athens could finally strike a deal with its ...

Report That Germany Prepares for Greek Default

Friday, June 12th, 2015

This note is from Business Insider and is a nice compilation of the difficulties facing negotiators even if a deal was achieved today (which is quite unlikely). Via Business Insider: Finance More: Finance REPORT: Germany is preparing for a Greek default with time for a last-minute deal running out Mike ...

Early FX Musings

Friday, June 12th, 2015

Via Kit Juckes at SocGen: The overnight news is dominated by the IMF pulling out of Greek debt talks and there's a nervousness to the commentary now, that was enough to support the Treasury market yesterday evening and the Bund market this morning. In FX-land, where EUR/USD is doomed to follow ...