Archive for January, 2016
Thursday, January 7th, 2016
Treasury yields have tumbled in the overnight session as the risk off trade continues unabated. The yield on the 2 year note has dropped to 0.956 from 0.98 at the close yesterday. The yield on the 3 year note has edged down to 1.209 from 1.242. The 5 year note ...
Posted in Uncategorized | Comments Off on Curvology
Thursday, January 7th, 2016
Dealers report short covering in 10s early in evening prior to the yuan fix. Then the floodgates opened and buyers emerged. End users were chunky buyers of 10s and 30s. Central banks bought 7s and 10s. Trading accounts sold 3s and 5s.
Posted in Uncategorized | Comments Off on Some Overnight Flow
Wednesday, January 6th, 2016
Via Jon Hilsenrath at the WSJ:
By
JON HILSENRATH
Jan. 6, 2016 2:04 p.m. ET
WASHINGTON—Federal Reserve officials expressed glimmers of trepidation as they decided at a mid-December policy meeting to raise short-term U.S. interest rates after keeping them near zero for seven years.
Though the decision to raise rates was unanimous, some officials expressed ...
Posted in Uncategorized | Comments Off on Hilsenrath on FOMC
Wednesday, January 6th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
AUSTRALIA: The BBerg consensus expects Australia to report its 20th consecutive monthly trade deficit at -$A2985mn as weaker Asia demand and low commodity prices weigh heavily on the export economy.
CHINA: Despite a continued large trade surplus, the BBerg consensus expects that FX Reserves will ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Wednesday, January 6th, 2016
Someone sent me this note about a new refrigerator which will take a picture of the contents of itself and send that to you so you can do an inventory. The gentleman who sent it knows that I am anti gadget and still employ a flip phone.
The article reminded me ...
Posted in Uncategorized | Comments Off on Voyage to LaPuta
Wednesday, January 6th, 2016
Via Stephen Stanley at Amherst Pierpont Securities:
The trade deficit improved in November by over $2 billion to -$42.4 billion, the smallest deficit since February. Relative to the advance figures released last week, there were roughly offsetting revisions to October (to a wider deficit) and November (to a smaller shortfall), so ...
Posted in Uncategorized | Comments Off on Trade Balance and GDP and FOMC
Wednesday, January 6th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Dollar Firms as China and North Korea Capture Market Attention
- The PBOC fixed the yuan lower for the seventh consecutive session
- Service sector purchasing managers reports dominate the economic news
- The US and Canada both report November trade figures today
- The Korean ...
Posted in Uncategorized | Comments Off on FX
Wednesday, January 6th, 2016
I did not see this yesterday but apparently the quarterly survey of lending officers conducted by the Fed contained some questions about high frequency trading.
Via MarketWatch:
WASHINGTON (MarketWatch) — High-frequency trading firms are making Wall Street nervous, according to a Federal Reserve survey released Tuesday.
The Fed’s quarterly poll of senior credit ...
Posted in Uncategorized | Comments Off on High Frequency Trading and the Treasury Market
Wednesday, January 6th, 2016
Via the WSJ:
By Georgi Kantchev
Jan. 6, 2016 5:09 a.m. ET
0 COMMENTS
LONDON—Oil prices fell to an 11-year low on Wednesday under pressure from a strong dollar and weak economic data from China, the world’s second-biggest crude consumer.
Investors were also positioning ahead of key U.S. supply data due later in the day. ...
Posted in Uncategorized | Comments Off on Oil Prices at 11 Year Low
Wednesday, January 6th, 2016
Via the FT:
by: Gabriel Wildau in Shanghai
China is to extend a ban on stock sales by large shareholders until permanent rules to restrict such sales take effect, as authorities seek to calm market fears over the lock-up that was due to expire on Friday.
China's blue-chip stock index, the CSI 300, ...
Posted in Uncategorized | Comments Off on Manipulating the Market in China