Archive for September, 2015

Durable Goods

Thursday, September 24th, 2015

Via Millan Mulraine at TDSecurities: Durable goods orders were broadly on consensus, with headline orders falling 2.0% on account of weaker transportation orders which declined 5.8%. The decline was marginally better than the market consensus for a 2.3% m/m and it follows the brisk 1.9% m/m gain the month before. Excluding ...

Ugly Metamorphosis for Caterpillar

Thursday, September 24th, 2015

Via the WSJ: By TESS STYNES Updated Sept. 24, 2015 9:58 a.m. ET 2 COMMENTS Caterpillar Inc. projected further revenue declines and announced plans to cut more than 10,000 jobs over the next three years as the maker of engines and heavy equipment continues to feel the impact from weakness in the energy and ...

Citi on Fed: No Hike Until Spring

Thursday, September 24th, 2015

Via Bloomberg: Citi Pushes Forecast for First Fed Hike to Spring 2016 2015-09-24 14:04:56.496 GMT By James Holloway (Bloomberg) -- Citi economist William Lee cites Fed’s new reaction function, which assigns greater importance to global and international developments; Citi previously saw first hike in late 2015. * “It will likely be next year before we can dissipate significantly the ...

Algo Trading in the Treasury Market

Thursday, September 24th, 2015

Excellent article via the WSJ: By Katy Burne Sept. 23, 2015 7:35 p.m. ET In midtown Manhattan one recent morning, Ryan Sheftel and a handful of math whizzes at New York-based Global Trading Systems LLC were debating how to profit from rapid-fire changes in the world’s most-liquid market, U.S. Treasurys. Their quandary: how to ...

Secondary Market Corporate Bond Trading Yesterday

Thursday, September 24th, 2015

Via Bloomberg: IG CREDIT: Client Flows Heavy in Most Active Issues 2015-09-24 10:21:07.627 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $13.6b vs $13.6b Tuesday, $18b the previous Wednesday. 10-DMA $13.5b; 10-Wednesday moving avg $15.4b. * 144a trading added $3.2b of IG volume vs $3.5b Tuesday, the highest since $5.3b March ...

Technical Work

Thursday, September 24th, 2015

Via David Ader at CRT Capital: * Not much going on in the overnight session so I took the bull (get it, bull?) by the horns and looked at 10s. * The thing I see is a potential Head & Shoulders with the neckline, also the 200-day MA near 2.11% and the ...

FX

Thursday, September 24th, 2015

Via Marc Chandler at Brown Brothers Harriman: The US dollar is trading heavier after extending its post-FOMC gains that saw the euro and sterling record two-week lows yesterday - The Norwegian krone is the weakest of the major currencies, losing 2% against the US dollar in response to the 25 bp ...

What Will Ms Yellen Say Tomorrow

Wednesday, September 23rd, 2015

Via the FT: What will Janet Yellen say? 2 hours ago A week after holding rates at a record low and delivering a commentary that's prompted investors to doubt the Federal Reserve's intention to tighten policy this year, the chairwoman of the US central bank gives a lecture on inflation and monetary policy. The ...

Merrill Lynch on Credit

Wednesday, September 23rd, 2015

Via Merrill Lynch Research: Situation Room Banking on supply redux 23 September 2015 Key takeaways High grade supply returned today with $6.45bn pricing from four deals. Banks accounted for about half the total, with 12-year sub Hold-co deals from C and JPM. 10-year senior US banks widened 1-3bps, subs widened 3-10bps while industrials were ...

Regulating the Treasury Market

Wednesday, September 23rd, 2015

The WSJ is doing a series of article on the fixed income market and today's installment focuses on the Treasury market. The article notes that regulators (as one would expect) are searching for way to impose additional layers of regulation on that market. Via the WSJ: By Ryan Tracy and Andrew Ackerman Sept. 23, ...