Archive for November, 2015
Wednesday, November 11th, 2015
Via Marc Chandler at Brown Brothers Harriman:
- The US dollar continues to consolidate its recent strong gains, but its pullback is shallow and corrective in nature
- Many are looking for fresh clues into what the ECB will do when it meets on December 3 in Draghi’s upcoming speech at ...
Posted in Uncategorized | Comments Off on FX
Tuesday, November 10th, 2015
I posted this FT piece this morning and here is the WSJ take on the issue to close the day:
By
KATY BURNE
Nov. 10, 2015 7:42 p.m. ET
4 COMMENTS
Large U.S. banks reported negative corporate-bond inventories for the first time ever by one measure, the latest twist in a market being remade by ...
Posted in Uncategorized | Comments Off on More on Dealer Positions in Corporate Bonds
Tuesday, November 10th, 2015
Via the FT:
November 10, 2015 11:25 am
Why are swap rates below bond yields?
Michael Mackenzie and Joe Rennison
US interest rate swaps, popular derivatives that track government bond yields, have experienced a spectacular collapse this month with an array of reasons being suggested by traders.
This market emerged during the 1980s and has ...
Posted in Uncategorized | Comments Off on More on the Collapse in Swap Spreads
Tuesday, November 10th, 2015
Via the WSJ:
By SUZANNE KAPNER
Nov. 10, 2015 7:46 p.m. ET
2 COMMENTS
Unsold goods are piling up on retailers’ shelves, a worrisome trend that signals weak consumer spending heading into the Black Friday kick off to the holiday season.
A glut could make it harder for department store chains to hit their earnings ...
Posted in Uncategorized | Comments Off on Inventory Accumulation
Tuesday, November 10th, 2015
It appears that a large part of the concession for the Long Bond auction tomorrow is in the yield curve. Just prior to the labor report I had clocked 5s30s at 135.8 and just afterwards (847AM) I marked the spread at 131.2. We are now trading at 139 which is ...
Posted in Uncategorized | Comments Off on Curvology
Tuesday, November 10th, 2015
Via Ian Lyngen at CRT Capital:
We are optimistic about this afternoon's 10-year auction and expect non-dealer interest to be a significant test of overseas demand for the sector ahead of the looming Fed liftoff. We see the risks skewed toward a stop-through. This morning's bid has failed to price-in a ...
Posted in Uncategorized | Comments Off on Ten Year Auction Preview
Tuesday, November 10th, 2015
The Federal Reserve Bank of Minneapolis has named Neel Kashkari to be its new President. He is a Goldman Sach alum and traveled to DC with Hank Paulson. He has worked for PIMCO and has unsuccessfully run for office, failing in a bid to unseat Jerry Brown as Governor of ...
Posted in Uncategorized | 3 Comments »
Tuesday, November 10th, 2015
Via Bloomberg:
IG CREDIT: List of New Issues Expected to Price in U.S. Today
2015-11-10 15:01:00.4 GMT
By Allan Lopez
(Bloomberg) -- List of new issues expected to price today:
* AstraZeneca $benchmark A2/A
* 3Y fxd and/or FRN, 5Y, 10Y, 30Y
* IPT: 3Y fxd +65, 3Y FRN 3mL equivalent, 5Y +85, 10Y
+125, 30Y +150 (all ...
Posted in Uncategorized | Comments Off on New Issues Today
Tuesday, November 10th, 2015
Via Stephen Stanley at Amherst Pierpont Securities:
Wholesale inventories turned out to be much higher than initially projected by BEA statisticians in the preliminary Q3 GDP estimate. Not only did the September non-auto wholesale inventory figure post a 0.5% increase (vs. BEA expectations of flat), but the August reading was revised ...
Posted in Uncategorized | Comments Off on Inventories and GDP
Tuesday, November 10th, 2015
Via Bloomberg:
RATES: Shorts Increase in Latest JPM Survey
2015-11-10 13:03:45.360 GMT
By Robert Elson
(Bloomberg) -- The JPMorgan Treasury Client Survey for the
week ended Nov. 9 vs week ended Nov. 2.
* Longs 20 vs 13
* Neutrals 47 vs 63
* Shorts 33 vs 24
* Net longs -13 vs -11
* "The all clients survey shows ...
Posted in Uncategorized | Comments Off on JPMorgan Duration Survey Got Shorter