Archive for November, 2015
Tuesday, November 10th, 2015
According to this FT story which cites a Golman research note dealers are net short the long end of the corporate bond market. That is an unprecedented circumstance. Goldman posits that the lack of inventory will damage liquidity and expects liquidity in that market to remain a long term problem.
Via ...
Posted in Uncategorized | 1 Comment »
Tuesday, November 10th, 2015
Via Bloomberg:
WHAT TO WATCH:
* (All times New York)
* Economic Data
* 6:00am: NFIB Small Business Optimism, Oct., est. 96.5
(prior 96.1)
* 8:30am: Import Price Index m/m, Oct., est. -0.1% (prior
-0.1%)
* Import Price Index y/y, Oct., est. -9.4% (prior
-10.7%)
* 10:00am: Wholesale Inventories, Sept., est. 0% (prior
0.1%)
* Wholesale Sales, Sept., est. -0.1% (prior -1%)
* ...
Posted in Uncategorized | Comments Off on What to Watch for Today
Tuesday, November 10th, 2015
Via Marc Chandler at Brown Brothers Harriman:
Consolidation in FX and Bonds as Equities Correct Lower
- The US dollar continues to consolidate after last week's gains amid greater confidence that the Federal Reserve will likely raise rates next month
- China reported softer than expected inflation figures
- Japan reported a smaller ...
Posted in Uncategorized | Comments Off on FX
Tuesday, November 10th, 2015
Dealers report mixed flows overnight with real money clients selling 5s and 10s while central banks bought 10 year notes.
The US is exceedingly cheap to Germany with US trading 169 over Bunds in the 10 year sector. I do not have Bloomberg but that is probably the widest level on ...
Posted in Uncategorized | Comments Off on Overnight Flow
Tuesday, November 10th, 2015
Via a fully paid up subscriber across the pond:
- Commerz Bunds: It will be interesting to see whether we get a more official confirmation to the sources story with Council members Nouy, Coeure, Liikanen on the wires today.
Markets: Has the ECB leaned too far out of the window already?
Bunds bounced ...
Posted in Uncategorized | Comments Off on ECB and Bunds
Tuesday, November 10th, 2015
Via Kit Juckes at SocGen:
<http://www.sgmarkets.com/r/?id=hf1716ac,14c2500f,14c25010&p1=136122&p2=f2423ed604658440286e7d681309f3d8>
A soggy US equity close stoped the ruse in Treasury yields and triggered an uneasy truce between the two markets. In FX the upshot is at the start of this week, the dollar and yen have given ground to the other G10 currencies, while Asian and ...
Posted in Uncategorized | Comments Off on Early FX
Tuesday, November 10th, 2015
Via Bloomberg:IG CREDIT: WFC 10Y Led Trading on Client Sales
2015-11-10 10:58:28.663 GMT
By Robert Elson
(Bloomberg) -- Secondary IG trading ended with a Trace
count of $13b vs $12.1b Friday, $13.5b last Monday. 10-DMA
$15.3b; 10-Monday moving avg $12.4b, the highest since $12.5b
April 27.
* 144a trading added $1.9b of IG volume vs $2.3b on ...
Posted in Uncategorized | Comments Off on Corporate Bond Trading Yesterday
Monday, November 9th, 2015
I posted this on Saturday about the Kuwaiti oil minister predicting a protracted period of oversupply in that market. The FT reports that the IEA has forecast that the oil glut will persist until 2020.
Via the FT:
The oil market will remain oversupplied until the end of the decade as an ...
Posted in Uncategorized | Comments Off on Oil Glut
Monday, November 9th, 2015
Via Bloomberg:
China’s Deflation Pressures Signal More Monetary, Fiscal Easing
2015-11-10 01:31:49.102 GMT
By Bloomberg News
(Bloomberg) -- China’s consumer inflation waned in October
while factory-gate deflation extended a record streak of
negative readings, signaling policy makers may need to hit the
gas again to ease deflationary pressures.
The consumer-price index rose 1.3 percent in October from a
year ...
Posted in Uncategorized | Comments Off on China Deflation
Monday, November 9th, 2015
Oh how the mighty have fallen!
Via the FT:
Saudi Arabia to tap global bond markets as oil fall hits finances
Riyadh could increase debt levels to as much as 50 per cent of GDP within five years
3 hours ago
by: Simeon Kerr in Riyadh
Saudi Arabia has decided to tap international bond markets for ...
Posted in Uncategorized | Comments Off on Saudi Arabia to Tap Debt Market