Archive for October, 2015

What to Watch Today

Tuesday, October 20th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 8:30am: Housing Starts, Sept., est. 1.142m (prior 1.126m) * Housing Starts m/m, Sept., est. 1.4% (prior -3%) * Building Permits, Sept., est. 1.170m (prior 1.170m, revised 1.170m) * Building Permits m/m, Sept., est. 0% (prior 3.5%) * Central Banks * 9:00am: Fed’s Dudley, Powell speak in New ...

“Epic Hunger” for Treasury Debt

Monday, October 19th, 2015

The WSJ has published an excellent article on the factors that are keeping bill rates at zero. Via the WSJ: By Katy Burne Oct. 19, 2015 8:26 p.m. ET Behind the epic hunger for government debt is a rule change that has Fidelity Investments and other money-fund managers hustling to snap up short-term Treasurys ...

Capital Flight

Monday, October 19th, 2015

Via the FT: US Treasury: capital outflows from China top $500bn   Capital outflows from China topped $500bn in the first eight months of this year, according to new calculations by the US Treasury that highlight the shifting fortunes in the global economy. The outflows, which peaked at some $200bn during the turbulent month ...

Let’s Twist Again?

Monday, October 19th, 2015

DeutscheBank strategists say that another round of yield curve twisting is an "underpriced risk". I would say so! Via Bloomberg: RATES: ‘Twist 2’ Is an ‘Underpriced Risk,’ Deutsche Bank Says 2015-10-19 15:50:35.867 GMT By Elizabeth Stanton (Bloomberg) -- While “not in our central forecast,” it is “plausible that the Fed could be trapped at the zero ...

Today’s New Issue Calendar

Monday, October 19th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-10-19 14:01:00.0 GMT By Allan Lopez (Bloomberg) -- List of new issues expected to price today: * Citigroup $benchmark Baa1/A- * 5Y fxd and/or FRN * IPT: 5Y fxd +145 area, 5Y FRN 3mL equivalent * Books: C * Brambles USA $500m Baa1/BBB+ * 10Y; 144A/Reg ...

Early FX

Monday, October 19th, 2015

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=hedfa24f,146c5ad3,146c5ad4&p1=136122&p2=c9c49ba745cde6f443bec87a3e13af64> It's a gratuitous title but a long flight to Hong Kong followed by a long jet-lagged day talking to clients who vary from frustrated risk bears to tentative risk bulls, ends in one of my favourite bars - Cathay's Long Bar before a flight to Singapore.  ...

Dudley on Rate Hike Timing

Monday, October 19th, 2015

Via Bloomberg: Fed’s Dudley Says Too Early for Rate Hike: Corriere (Earlier) 2015-10-19 09:26:15.984 GMT By Marco Bertacche (Bloomberg) -- New York Federal Reserve Bank President William Dudley says “it’s still too early to consider an interest-rate increase” in comments cited by Italian newspaper Corriere della Sera’s economy supplement on Monday. * “The situation has changed in the ...

Benevolent Deflation

Sunday, October 18th, 2015

Switzerland has experienced falling prices for the last four years yet the WSJ reports that the result is somewhat benevolent as the economy still experiences growth (albeit slow ) and low unemployment (3.4 percent). Via the WJS: By Brian Blackstone Oct. 18, 2015 1:34 p.m. ET It’s as close to an economic consensus as ...

Drowning in A Sea of Liquidity

Sunday, October 18th, 2015

The WSJ reports that a combination of factors has banks rejecting certain types of deposits. New regulatory requirements post the crisis devalue "hot money" such as deposits from hedge funds. In order to meet new stringent rules banks are encouraged to hold deposits at central banks and high quality government ...

FX

Friday, October 16th, 2015

Via Marc Chandler at Brown Brothers Harriman: Dollar and Equities End the Week on a Firm Note - Improved risk appetite was extended overnight, especially in the equity space - Eurozone final September CPI came in at -0.1% y/y, as expected; trade data was soft - New Zealand Q3 CPI came ...