Archive for October, 2015
Thursday, October 15th, 2015
Via Min Zeng at the WSJ:
By
Min Zeng
Oct. 14, 2015 6:56 p.m. ET
Investors are handing the federal government a lot of free money.
The pile of Treasury bills sold at an interest rate of zero since the financial crisis topped $1 trillion this summer and grew further this week, with ...
Posted in Uncategorized | Comments Off on Great Deal for Taxpayers
Thursday, October 15th, 2015
Dealers report real money in Japan taking profits by selling the 7 year through 10 year sector. Trading accounts sold the 5 year note.
The yield curve is marginally flatter overnight with 5s 10s now 70.6 versus 70.7 at 430PM yesterday. Similarly, 5s 30s has moved to 155.9 from 156.5. The ...
Posted in Uncategorized | Comments Off on Overnight Flow
Thursday, October 15th, 2015
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=hed8ae42,14621c85,14621c86&p1=136122&p2=1c1d5397c21999186765975d10ac6bab>
The Atlanta Fed's ‘nowcast' of GDP growth has fallen to 0.9% as data continue to disappoint. Falling gasoline prices aren't fuelling spending in other areas. Expectations of Fed tightening are pushed further back and Treasury yields are falling, taking the dollar with them.
US growth has hit ...
Posted in Uncategorized | Comments Off on Early FX
Wednesday, October 14th, 2015
Jon Hilsenrath (with a co author, Anna Louise Sussman) is out with an article on the low probability of a Fed rate hike in 2015. The FOMC says it is data dependent and the data are not co operating. The article does not add much to our store of knowledge ...
Posted in Uncategorized | Comments Off on Hilsenrath Article
Wednesday, October 14th, 2015
Via Robert Sinche at Amherst Pierpont Securities:
AUSTRALIA: Volatility in the Employment change each month appears to be moderating somewhat and the BBerg consensus expects a +9.6K gain for September following a 17.4K rise in August. The UR is expected to hold at 6.2%, in line with the average over the ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Wednesday, October 14th, 2015
Via Sophia Kearney-Lederman at FTN Financial:
Following this morning’s retail sales report, the Atlanta Fed has revised down its GDPnow forecast (the “nowcast”) for third quarter growth from 1.0% on October 9 to 0.9% presently. A 0.1 percentage point increase in inventory investment (due to updated retail inventories data) was not ...
Posted in Uncategorized | Comments Off on GDP Forecasts
Wednesday, October 14th, 2015
The Administration via the Treasury Department has previously stated that the Treasury will exhaust its borrowing authority under the current debt ceiling on November 5th. The CBO today concurred with that analysis.
Via TheHill.com:
By Peter Schroeder - 10/14/15 02:55 PM EDT
The Congressional Budget Office gave credence Wednesday to the Nov. 5 ...
Posted in Uncategorized | Comments Off on CBO on Debt Ceiling
Wednesday, October 14th, 2015
The Treasury and the CBO project that the government will exhaust its ability to borrow on November 5th. TheHill.com reports that the leadership vacuum in the House engendered by John Boehner's retirement threatens another perils of Pauline tango with default.
Via TheHill.com:
By Peter Schroeder and Cristina Marcos - 10/14/15 06:00 AM ...
Posted in Uncategorized | Comments Off on GOP Leadership Vacuum and Debt Ceiling
Wednesday, October 14th, 2015
This story about the cost of unwinding swap agreements by the City of Chicago reminds me that the only perfect hedge is in a Japanese garden.
Via Bloomberg:
Chicagoans’ Cost to Exit Swap Agreements Approaches $300 Million
2015-10-14 14:01:48.60 GMT
By Elizabeth Campbell and Darrell Preston
(Bloomberg) -- Chicago’s attempt to clean up a legacy ...
Posted in Uncategorized | 1 Comment »
Wednesday, October 14th, 2015
Via Bloomberg:
By Allan Lopez
(Bloomberg) -- List of new issues expected to price today:
* 21st Century Fox America $1b Baa1/BBB+
* 10Y, 30Y; 144A/Reg S with reg rts
* IPT: 10Y +195, 30Y +235 (both area)
* Books: JPM
* Newell Rubbermaid $600m (will not grow) Baa3/BBB-
* 3Y, 10Y
* IPT: 3Y +160, 10Y +225 (both ...
Posted in Uncategorized | Comments Off on New issue Corporates