Archive for October, 2015

New Issue Calendar

Tuesday, October 13th, 2015

Via Bloomberg: IG CREDIT: List of New Issues Expected to Price in U.S. Today 2015-10-13 14:02:49.44 GMT By Allan Lopez (Bloomberg) -- List of new issues expected to price today: * Fidelity National Information Services $benchmark Baa3/BBB * 3Y fxd and/or FRN, 5Y, 7Y, 10Y * IPT: 3Y +205, 3Y FRN 3mL equivalent, 5Y +235, 7Y +280, 10Y ...

FOMC Status

Tuesday, October 13th, 2015

Stephen Stanley writes about the current status of FOMC policy and lobs in a comment about the NFIB: For those of you that, like me, had the day off yesterday, I thought it might be helpful to give a quick summary of what we missed. Fedspeak: The main event on the U.S. economic/policy ...

Retail Sales Preview

Tuesday, October 13th, 2015

Tomorrow we receive data on retail sales and policy makers at the central bank will closely scrutinize that data for indications on the mood of the consumer. ActionEconomics (which you may find here at ActionEconomics.com) expects a headline print of 0.2 percent but avers that there is considerable downside risk ...

FX

Tuesday, October 13th, 2015

Via Marc Chandler at Brown Brothers Harriman: The recent trends in the global capital markets are reversing today.  Although the price action yesterday warned of the risk, there have been five fundamental developments that are contributing to the price action today. First was China's September trade figures.  The balance was little changed ...

What to Watch Today

Tuesday, October 13th, 2015

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * TBA: Monthly Budget Statement, Sept., est. $93b (prior $105.8b) * Central Banks * 8:00am: Fed’s Bullard speaks in Washington * 4:50pm: Reserve Bank of New Zealand’s Wheeler speaks in Auckland * Supply * 11:00am: U.S. to announce plans for auction of 4W bills * 11:30am: U.S. to sell ...

Dislocations in the Swap Market

Tuesday, October 13th, 2015

This is an excellent exposition on the dislocations in the swap market which to a large extent stem from regulatory changes. Via Joe Rennison at the FT: Market dislocations often convey unpleasant truths for investors and policymakers. That is one conclusion gleaned from the current breakdown between US interest rate derivatives and the ...

Spreading the Oil Pain

Tuesday, October 13th, 2015

Via the WSJ: By Chester Dawson and Benoît Faucon Oct. 12, 2015 7:00 p.m. ET As layoffs become the energy industry’s main response to low oil prices, a handful of producers are aiming to trim personnel costs without pink slips by spreading the pain among their employees. Companies including Occidental Petroleum Corp. and Canadian Natural ...

Early FX

Tuesday, October 13th, 2015

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=hed4199a,145af04f,145af050&p1=136122&p2=ac5898c2d089942bd164be6e73c680b0> Oil prices fell yesterday afternoon and equity inidices are softer, bond yields lower across the board this morning. The deterioration in risk sentiment is being attributed to a sharp fall in Chinese imports (in dollar terms, imports fell 20.4% y/y, though exports are down only 3.7% ...

Overnight Flow

Tuesday, October 13th, 2015

Dealers who are kind enough to report info while we sleep report two way flow in the 3 year to 5 year sector by end user accounts. Central banks sold modest amounts of 2 year and 3 year paper. Trading accounts were better buyers of the 10 year sector. I have ...

Avoid High Speeds in the Treasury Market

Monday, October 12th, 2015

NASDAQ owns Treasury trading broker Espeed and has introduced a trading wrinkle in which customers can request that they not be partnered with a high speed high frequency trading counterparty. I would agree with one trader quoted by the WSJ in this article who stated that the fracturing of the ...