Overnight Flow in Treasury Space
Friday, December 18th, 2015Dealers report trading account buyers of 5s and 30s. Central banks have sold 3 year and 5 year paper. yen funded clients bought 10 year sector paper.
Archive for December, 2015
Dealers report trading account buyers of 5s and 30s. Central banks have sold 3 year and 5 year paper. yen funded clients bought 10 year sector paper.
Early FX
Friday, December 18th, 2015Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=hf632b15,15390d36,15390d37&p1=136122&p2=ff8e559361fe7b69d042ca60a3480616> Good Morning. There's a bit of a 'Bah Humbug' morning-after feeling around the place today. Adrenaline and a bit of euphoria kept everything going from the Fed lift-off until the open of the US equity markets yesterday but since then, it's all turned hangoverish. Overnight, the ...
Record Redemptions
Thursday, December 17th, 2015Via the FT: The US corporate bond complex has been rattled. US funds purchasing investment grade bonds were hit with a record wave of redemptions, a week after two high yield funds announced they would shutter and another barred withdrawals as the credit market showed further cracks, US capital markets correspondent Eric ...
Glum Scenario From Albert Edwards
Thursday, December 17th, 2015I have been reading the research product of Albert Edwards for about a dozen years. I actually worked at the same firm as him at one point but never met the gentleman. He always writes in apocalyptic fashion and his latest jeremiad is in that vain. He always sees disaster ...
TIPS Result
Thursday, December 17th, 2015Via Ian Lyngen at CRT Capital: Today at 1:05 PM * 5-year TIPS auction stops at +0.472% vs. a +0.471% 1:00 PM bid WI. * Bid/Cover 2.38 vs. 2.52 average. * Dealers were awarded 25% vs. 51% average for 5-year TIPS. * Indirects get 69.9% vs. 44% norm. * Directs take 5% vs. 5% average. * Dealer ...
Credit Pipeline
Thursday, December 17th, 2015Corporate bond issuance should be rather de minimis for the remainder of this year but should resume robustly in January. Via Bloomberg: ============================================================================= IG CREDIT PIPELINE: Long List Awaits Re-Open of Issuance in Jan. 2015-12-17 10:27:02.949 GMT By Robert Elson (Bloomberg) -- Most recent updates: * Republic of Turkey (TURKEY) Baa3/BBB-, files $4.9b debt shelf * Turkey has been ...
“Unsavory Side Effects”
Thursday, December 17th, 2015Via Greg Ip at the WSJ: The Federal Reserve always knew its unprecedented campaign to boost employment could have unsavory side effects. As that campaign comes to an end, those side effects are making themselves felt. Seven years of near-zero interest rates caused investors to pour money into corporate debt, emerging-market bonds ...
FX
Thursday, December 17th, 2015Via Marc Chandler at Brown Brothers Harriman: World Survives Fed Hike - Much of the commentary about the Fed's action have noted that the FOMC statement used the word "gradual" not once but twice as evidence of its dovishness - Although it is not final, the US Congress is set to approve ...
Don’t Be Wrong, Get Long (Bank Stock)
Thursday, December 17th, 2015Via Bloomberg: December 17, 2015 — 12:00 AM EST Seven years after American banks brought the global economy to its knees, stock investors want nothing more than to own them again now that the Federal Reserve is back to raising interest rates. The country’s biggest financial stocks have surged more than 5 percent ...
Some Curvology
Thursday, December 17th, 2015The US Treasury curve motored flatter overnight as the idea of serial FOMC tightening gains currency. I had marked 5s 10s at 56.8 moments prior to the 200PM announcement and that spread trades now at 53.4. Similarly, I had marked 5s 30s at nearly 129 and that spread currently rests ...