Archive for June, 2015

JPM Duration Survey

Tuesday, June 9th, 2015

Via the good folks at Bloomberg: RATES: ‘Modestly Less Short’ in Latest JPM Survey 2015-06-09 12:23:51.113 GMT By Robert Elson (Bloomberg) -- The JPMorgan Treasury Client Survey for the week ended June 8 vs weeks ended June 1, May 26 * Longs 9 vs 9 vs 11 * Neutrals 52 vs 50 vs 65 * Shorts 39 vs ...

What to Watch Today

Tuesday, June 9th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 9:00am: NFIB Small Business Optimism, May, est. 97.2 (prior 96.9) * 10:00am: Wholesale Inventories, April, est. 0.2% (prior 0.1%) * * Wholesale Trade Sales, April, est. 0.6% (est. -0.2%) * 10:00am: JOLTS Job Openings, April, est. 5.044m (prior 4.994m) * Central Banks * * 10:50pm: Reserve Bank of Australia’s Stevens ...

Corporate Bond Trading Yesterday

Tuesday, June 9th, 2015

Via Bloomberg: IG CREDIT: Client Flows Led Trading; Issuance May Be Heavy 2015-06-09 10:06:24.771 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $11.2b vs $11.9b Friday, $13.5b the previous Monday. * 10-DMA $15.1b * 144a trading added $1.8b of IG volume vs $1.4b Friday, $1.8b last Monday * Most active issues longer ...

FX

Tuesday, June 9th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar Trying to Stabilize after Giving Back Jobs-Inspired Gains The losses the US dollar suffered yesterday were extended into Asia today.  The dollar has  stabilized in Europe.  Short-term technical indicators warn against expecting deep retracement today.  Support for the euro is seen near $1.12. ...

Overnight Flows

Tuesday, June 9th, 2015

Dealers report modest activity overnight. Japanese based end users bought 7 year sector spread product. Fast money bought Long Bonds against 5s and 7s. Asian commercial banks were sellers in the 3 year sector and buyers in the 5 year sector.

Early Morning Musings on FX

Tuesday, June 9th, 2015

Via Kit Juckes at SocGen: <http://www.sgresearch.com/r/?id=hded7adb,12ee69e0,12ee69e1&p1=136122&p2=15a4647d09803cc87c4d9d6ed1c98ac0> Words, words, words, I'm so sick of words...to paraphrase Freddy Eynsford-Hill. Which I realise is a dangerous thought for someone scribbling jibberish. But President Obama either did, or didn't say that further dollar strength could be a problem. Either way,  the mere thought that he might ...

Monetary Policy Mechanics

Tuesday, June 9th, 2015

This is an interesting to me opinion piece in the WSJ which describes the mechanics of the tightening process. The Federal Reserve has stated that one of its main tools in the coming cycle will be adjustments to the rate it pays on excess reserves. The article's author, Ben Steil, ...

Eclectic Topics Via Merrill Lynch

Monday, June 8th, 2015

Via Merrill Lynch Research;   More indigestion. For next week we expect a pick-up in high grade supply to $30-40bn, from $23bn this week, a good portion of which is M&A related, and thus insensitive to market conditions. Although dealers have made some progress (~$2bn) bringing down balance sheets in high grade ...

Modern Day King Canutes

Monday, June 8th, 2015

In legend and folk lore King Canute is the Danish King who commanded the incoming tide to halt but the tide inexorably continued its march. King Canute rebuked his advisers and counselled them that such an act was beyond the abilities of an earthly ruler. The leaders of the G7 nations ...

Slow Day

Monday, June 8th, 2015

This is an excerpt from the CRCT Capital end of day note: Monday’s session started off with a subdued volume profile and that dynamic carried through into the close.  After peaking early with cash trading at 86%, flows slowed throughout the day to end a just 55% of the 10-day moving-average ...