Overnight Treasury Flows
Wednesday, June 3rd, 2015Trading account buyers of 10s. Fast money sellers of 3s outright and versus 2s and 5s. Yen funded end users buying 5s and 7s.
Archive for June, 2015
Trading account buyers of 10s. Fast money sellers of 3s outright and versus 2s and 5s. Yen funded end users buying 5s and 7s.
Global Growth Forecast Reduced
Wednesday, June 3rd, 2015Via Bloomberg: OECD Cuts Global Growth Outlook as Investment Lags, Greece Looms 2015-06-03 08:30:47.394 GMT By Mark Deen (Bloomberg) -- The Organization for Economic Cooperation and Development cut its global growth forecast, saying investment is lagging and risks including a possible Greek default are hurting confidence. The world economy will expand 3.1 percent this year, down from the 3.7 ...
Morning Musings on FX
Wednesday, June 3rd, 2015Via Kit Juckes at SocGen: http://www.sgresearch.com/r/?id=hde24450,12dca079,12dca07a&p1=136122&p2=d28a1437e806ee39bcafd8d6635e9886> A proposal has been drafted by Greece's creditors that only needs to be agreed by the Mr Tsipras for funds to be freed up and the crisis postponed. Mr Tsipras meanwhile has drafted an alternative proposal. What could go wrong? The genuine positive development is that ...
Au out of favor
Tuesday, June 2nd, 2015Via Bloomberg: Gold is out of favor. Investors cut holdings in bullion-backed exchange-traded products to the lowest since 2009 as surging stock markets from the U.S. to China hurt demand and prospects for rising U.S. interest rates boosted the dollar. The assets contracted 5.45 metric tons, or 0.3 percent, to 1,594.08 tons ...
Eulogy for the Treasury Market
Tuesday, June 2nd, 2015I have posted numerous articles here on the decline of liquidity in the US Treasury market. This one from a WSJ story strikes at the roots of the Treasury market, a market in which I have participated for thirty six years. The story reports that ICAP (one of the largest ...
Taper Tantrum Redux
Tuesday, June 2nd, 2015In this research piece (covering eclectic topics) Merrill Lynch suggests that the decline in corporate bond prices mimics the declines suffered in the terrible taper tantrum of 2013. Via Merrill Lynch: antrum deja vu. Global growth, inflation and interest rates are rebounding, and we are likely only a few months away from ...
Retail Revival?
Tuesday, June 2nd, 2015Via the FT: CompaniesSigns of a US retail revival an hour ago After a frigid three months, some signs of life in the US retail space. That is the message from executives with three apparel companies on Tuesday, as executives with Guess and G-III Apparel lifted full-year earnings expectations while those with Ascena Retail ...
Creditors To Deliver Ultimatum to Greece
Tuesday, June 2nd, 2015This is from the WSJ and essentially says that those owed money by Greece are tired of that country's dilly dallying in negotiations and will present Greek negotiators with a package that is non negotiable except for some minor details. Via the WSJ: By Marcus Walker Updated June 2, 2015 4:39 p.m. ET ...
Nominal GDP Targeting
Tuesday, June 2nd, 2015Politico.com is a political site I enjoy and it has taken a small foray into our esoteric world of monetary policy. The website has posted an article in which Larry Summers has given his (almost) endorsement to the use of nominal GDP as a targeting tool by the Federal Reserve. ...
UBS on 10 Year at Year End
Tuesday, June 2nd, 2015Via Bloomberg: RATES: UST 10Y Yield Has Scope to 2.5% by Year-End, UBS Says 2015-06-02 19:31:41.99 GMT By Katherine Chiglinsky (Bloomberg) -- Yields may rise “somewhat gradually” by year-end as Fed tightening and ECB’s QE program will likely drive European and U.S. rates markets, UBS strategist Mike Schumacher says in strategy video. * “Massive back-up in rates” is ...