Archive for August, 2015
Wednesday, August 26th, 2015
The Treasury curve is in the midst of a rather dramatic steepening event. When I first marked levels this morning at 630AM ish 5s 10s was 65.4. As I compose this electronic missive that spread rests at 68.6. The Long Bond trades as if it suffers from financial herpes as ...
Posted in Uncategorized | 2 Comments »
Wednesday, August 26th, 2015
Via CRT Capital:
We are apprehensive about the takedown of this afternoon's 5-year auction as the sector has recently met mixed receptions and Treasuries remain under pressure this morning. The volatility in the equity market has been the main story this week and frankly we expect 5s to be an afterthought. ...
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Wednesday, August 26th, 2015
Dealers reporting solid demand for 10s behind 2.15 percent. In addition there was a chunky seller of double old bonds which cheapened the issue 2 ticks.
Posted in Uncategorized | Comments Off on Treasury Flow
Wednesday, August 26th, 2015
Via Stephen Stanley at Amherst Pierpont Securities:
The July durable goods report was considerably stronger than expected. The headline figure posted a 2.0% gain, while the ex-defense and aircraft component rose by 1.6%. A chunk of those gains were driven by a surge in auto production in the month, as a ...
Posted in Uncategorized | Comments Off on Durable Goods
Wednesday, August 26th, 2015
This excellent note from Kit Juckes on the Euro is a worthwhile read:
I don't read horoscopes, and I don't pay much attention to charts either - though I do sometimes, and this is one of those times
The link is to a 'Chart Alert'. That went out when the Euro spiked ...
Posted in Uncategorized | Comments Off on Technical Perspective on Euro Currency
Wednesday, August 26th, 2015
When I blogged back in 2008 at the height of the crisis I regularly quoted from the William Butler Yeats poem "The Second Coming". The recent volatility has reminded me somewhat of that period when the centre did not hold and I thought it worthwhile to reprise that poem here ...
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Wednesday, August 26th, 2015
Via Martin Wolf at the FT:
I am neither intelligent enough to understand the behaviour of “Mr Market” — the manic-depressive dreamt up by investment guru, Benjamin Graham — nor foolish enough to believe I do. But he has surely been in a depressive phase. Behind this seem to be concerns ...
Posted in Uncategorized | Comments Off on Worrying About China
Wednesday, August 26th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Uncertainties Everywhere
- As financial markets try to find some degree of stability, expectations for the timing of the first Fed hike keep shifting
- Most of the newfound dovish views on the Fed have premised this on the elevated market volatility and/or the developments in ...
Posted in Uncategorized | Comments Off on More FX
Wednesday, August 26th, 2015
Traders who write to me are reporting lighter flow as the gyrating markets drives investors to the sidelines. Dealers are reporting mostly unwinds of previously popular trades. Against that background they are observing unwinds of flattening trades and unwinds of trades which would have benefited if the front end took ...
Posted in Uncategorized | Comments Off on Treasury Flow
Wednesday, August 26th, 2015
Via Bloomberg:
IG CREDIT: Volume Improves on Front-End Client Flows
2015-08-26 09:54:22.926 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $15.3b vs $7.9b Monday, $14b the previous Tuesday. 10-
DMA $11.8b; 10-Tuesday moving avg $14.7b.
* 144a trading added $2.2b of IG volume vs $1.8b on Monday,
$2.1b last Tuesday
* 9 ...
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