Archive for August, 2015
Wednesday, August 26th, 2015
Via Kit Juckes at SocGen:
<http://www.sgresearch.com/r/?id=he7b3ace,13ce7c4d,13ce7c4e&p1=136122&p2=2f1166ba641ffe15467bd5234ae597cc>
The PBOC move yesterday to cut required reserve ratios by 50bp for all banks, and to cut one-year deposit and lending rates by 25bp, has helped calm markets. As Wei Yao wrote yesterday, the RRR move was more a necessary response to liquidity tightening caused by ...
Posted in Uncategorized | Comments Off on Early FX
Tuesday, August 25th, 2015
Yellen will testify before a House Committee at some not yet agreed on mutually acceptable date in September. The topic is bank supervision so unless she chooses to be be overly loquacious it should be a bland affair. Thanks to my friend Steve Liddy for this one.
Via Bloomberg:
Yellen May Appear ...
Posted in Uncategorized | Comments Off on Yellen Testimony
Tuesday, August 25th, 2015
Larry Summers wrote an op ed for the FT yesterday in which he opined that a rate hike at this juncture by the FOMC would be a "serious error". Today he repaired to Twitter and used the 140 characters to suggest that the next move from the central bank might ...
Posted in Uncategorized | Comments Off on Another Round of QE?
Tuesday, August 25th, 2015
Via an excerpt from the end of day note of Ian Lyngen and David Ader of CRT Capital:
As for the first leg of this week's supply, the reception to the 2-year auction was frankly a bit disappointing. The rare tail of 0.3 bp was accompanied by low direct awards and ...
Posted in Uncategorized | Comments Off on Treasury Volumes
Tuesday, August 25th, 2015
TheHill.com reports that the Congressional Budget Office as concluded that the government will exhaust its capacity to borrow somewhere between mid November and early December. So prepare for another round of weeping and gnashing of teeth as politicians exercise their lungs rather than some semblance of common sense.
Via TheHill.com
By Rebecca ...
Posted in Uncategorized | Comments Off on Debt Ceiling Dance Descends on DC
Tuesday, August 25th, 2015
Via ian Lyngen at CRT Capital:
*** A lackluster takedown with non-dealer bidding 57.4% vs. 62% norm and a rare 0.3 bp tail. ***
* 2-year auction stops at 0.663% vs. a 0.660% 1-pm bid WI.
* Dealers were awarded 42.6% vs. 38% average of last four 2-year auctions.
* Indirects get 47.1% vs. ...
Posted in Uncategorized | Comments Off on Two Year Note Result
Tuesday, August 25th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
I will be doing two segments on Bloomberg TV today 4:10 – 4:30pm, one on China and one on rest-of-the-world.
CHINA: The Westpac/MNI Consumer Sentiment Index for August will be released following a 2-month rebound to 114.5 in July.
NEW ZEALAND: The BBerg consensus expects lower ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Tuesday, August 25th, 2015
Via Ian Lyngen at CRT Capital:
The 2-year sector is trading lower this morning, pricing in a modest outright concession although still outperforming the rest of the curve. We're cautiously optimistic about this afternoon's auction as it benefits from a trend of solid investment fund demand and this sector has a ...
Posted in Uncategorized | Comments Off on Two Year Note Auction
Tuesday, August 25th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
A quick early note as just after 6am China/PBOC announced both a 25bp cut in the 1-year lending (to 4.6%) and 1-year deposit (to 1.75%) rates and a ½ percentage point cut in the RRR. While my memory far from perfect, this is ...
Posted in Uncategorized | Comments Off on Quick Thoughts on the Actions From China
Tuesday, August 25th, 2015
Via Millan Mulraine at TDSecurities:
US household sentiment rebounded strongly in July, with the headline CB confidence index rising to a 7-month high of 101.5 from 91.0 the month before. This was a far better showing than the market consensus for a more modest gain to 93.4, and it takes the ...
Posted in Uncategorized | Comments Off on Consumer Confidence