Archive for June, 2015
Wednesday, June 10th, 2015
Via WSJ:
Worker wages and benefits may be picking up faster than we think.
Employer costs for employee compensation jumped 4.9% from a year earlier in March,the Labor Department said on Wednesday, the second consecutive increase at that relatively robust level.
Average cost per hour worked rose to $33.49 in March, versus $31.93 ...
Posted in Uncategorized | Comments Off on Nascent Wage Pressures
Wednesday, June 10th, 2015
Via CRT Capital:
We are cautiously optimistic about this afternoon's 10-year auction and expect non-dealer interest to be significant (averages 64% for this benchmark). The weaker price action this morning has priced-in a meaningful outright concession and the WI suggests the highest yielding 10-year auction since September - presumably an incentive ...
Posted in Uncategorized | Comments Off on Ten Year Auction Factoids
Wednesday, June 10th, 2015
Yesterday morning I published this note from Ben Steil of the Council on Foreign Relations which offered the view that Board of Governor control of the interest rate on excess reserves might make for a more dovish outcome when rate hikes begin. Chris Low of FTN Financial in his morning ...
Posted in Uncategorized | Comments Off on Regarding IOER
Wednesday, June 10th, 2015
Supreme Court Justice Potter Stewart in the 1950s famously defined pornography as "I know it when I see it". The same might be said of financial bubbles. This CNBC article made me think of the Stewart quote as it describes farmers in China tending toward their equity holdings rather than ...
Posted in Uncategorized | Comments Off on I Know it When I See It
Wednesday, June 10th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
* Economic Data
*
* 7:00am: MBA Mortgage Applications, June 5 (prior -7.6%)
* 2:00pm: Monthly Budget Statement, May, est -$97.5b
(prior -$129.971b)
* Central Banks
*
* 5:00pm: Reserve Bank of New Zealand cash rate, est. 3.5%
(prior 3.5%)
* 5:05pm: RNBZ’s Wheeler holds news conference in
Wellington
* Supply
*
* 1:00pm: U.S. to ...
Posted in Uncategorized | Comments Off on what to Watch Today
Wednesday, June 10th, 2015
Via Bloomberg:
IG CREDIT: Client Flows Heavy in Most Active Issues
2015-06-10 09:56:44.293 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $15.5b vs $11.2b Monday, $18.5b the previous Tuesday.
* 10-DMA $15.4b
* 144a trading added $2.2b of IG volume vs $1.8b on Monday,
$3.1b last Tuesday
* Most active issues:
*
* MS ...
Posted in Uncategorized | Comments Off on Secondary Market Corporate Bond Trading Yesterday
Wednesday, June 10th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Dollar Losses Extended
The US dollar's losses have accelerated. The key drivers are not domestic but emanate from Europe and Japan. Evidence continues to accumulate that points to a moderate recovery in the US economy. The JOLTS data showed job openings are at new ...
Posted in Uncategorized | Comments Off on FX
Wednesday, June 10th, 2015
Via Bloomberg:
by Nabila AhmedSonali Basak
June 9, 2015 — 8:28 PM EDT
For all the concern that Wall Street’s shrinking balance sheets will fuel a liquidity crisis when investors flee credit markets, Citigroup Inc. strategist Stephen Antczak says investors may be overlooking an even bigger catalyst.
The size of the U.S. corporate-bond market ...
Posted in Uncategorized | Comments Off on Corporate Bond Market Illiquidity Examined
Wednesday, June 10th, 2015
The mighty greenback has declined against most major currencies in overnight trading. The Yen has posted sharp gains in response to comments by BOJ Governor Kuroda that the yen is weak and unlikely to fall further.
Via Bloomberg:
by Chikako MogiHiroko Komiya
June 10, 2015 — 1:01 AM EDT
Updated on June 10, 2015 ...
Posted in Uncategorized | Comments Off on Yen Strength and Dollar Weakness
Wednesday, June 10th, 2015
Via the FT:
Bund yields jump to 1 per cent
2 hours ago
That yield on the 10-year bunds is up from almost zero in mid-April. Brutal.
It is a massive drop by any standards, and particularly for the usually sedate 'safe-haven' German benchmark, writes Katie Martin.
So, what happens next?
More than likely, anyone who ...
Posted in Uncategorized | Comments Off on Bunds at 1.00 Percent