Archive for July, 2015

Overnight Data Preview

Thursday, July 30th, 2015

Via Robert Sinche at Amherst Pierpont Securities: RUSSIA: The BBerg consensus expects the CBR to cut its policy rate by 50bp to 11.0%, although the recent weakening of the RUB may prevent that expected cut; the peak was 17% at end 2014. AUSTRALIA: Private Sector credit growth returned to its cycle high ...

Updated Corporate Pipeline

Thursday, July 30th, 2015

Via Bloomberg: MORE IG CREDIT PIPELINE: Deals Continue to Be Added 2015-07-30 17:41:44.557 GMT By Polina Noskova (Bloomberg) -- (Adds J.B. Hunt, RBS, Celgene) Today’s updates to the pipeline: * J.B. Hunt Transport (JBHT) Baa1/BBB+, asks GS/JPM/MS to arrange telephonic investor meetings on Friday, July 31 * Royal Bank of Scotland Group (RBS) Ba1/BBB-, mandates BofAML/CS/MS/RBS RBS to arrange ...

Expected to Price Today

Thursday, July 30th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-07-30 14:01:00.0 GMT By Allan Lopez (Bloomberg) -- 4 new issues expected to price today: * Ford Motor Credit $benchmark Baa3/BBB- * 5Y fxd and/or FRN, 10Y * Denoms: $200k x $1k * IPT 5Y fxd +165 area, 5Y FRN 3mL equivalent, 10Y +200 area * ...

Seven Year Note Auction

Thursday, July 30th, 2015

Via Ian Lyngen at CRT Capital: We're cautiously optimistic about the prospects for this afternoon's 7-year auction and anticipate a solid reception. The market is a bit stronger this morning, although not pricing in a concession, and in the wake of strong demand for 2s and 5s we're anticipating similar interest ...

Regarding the Strength of the Recovery

Thursday, July 30th, 2015

Via the WSJ: The Worst Expansion Since World War II Was Even Weaker By Eric Morath The economic expansion—already the worst on record since World War II—is weaker than previously thought, according to newly revised data. From 2012 through 2014, the economy grew at an all-too-familiar rate of 2% annually, according to three years of ...

GDP Analysis

Thursday, July 30th, 2015

Via Millan Mulraine at TDSecurities: Treasuries are weaker with the curve bear-flattening as the better than expected tone of the Q2 GDP report is expected to bolster the Fed's confidence in the economic recovery and strengthen the case for a September hike. The report essentially reaffirmed that the US recovery has moved ...

Curvology

Thursday, July 30th, 2015

There has been significant curve flattening since I first marked levels at about 515AM this morning. The 5s 10s spread has flattened to 63.8 from 66.3. The 5s 30s spread has narrowed to 132.6 from 136.2. The 10s 30s  spread narrowed to 68.8 from 69.4. The 5s 7s spread is ...

Corporate Bond Run

Thursday, July 30th, 2015

This is from 803AM New York time so a bit dated (I was swimming laps at that time). 7/29 CLOSE    7/30 OPEN      CHANGE GE  24        90/87          89/86            -0- WFC 25      129/126        128/125    ...

What to Watch Today

Thursday, July 30th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: New Advance Report on U.S. International Trade in Goods * 8:30am: GDP Annualized q/q, 2Q A, est. 2.5% (prior -0.2%) * Personal Consumption, 2Q A, est. 2.7% (prior 2.1%) * GDP Price Index, 2Q A, est. 1.5% (prior 0%) * Core PCE q/q, 2Q A, ...

Coffee Squeeze

Thursday, July 30th, 2015

Via the FT: It’s become known in the coffee market as the “July squeeze”. A group of traders and coffee roasters stand to lose millions of dollars at the end of this week as a rival dealer has amassed a huge position in the August Robusta coffee contract pushing the market, they ...