Archive for February, 2016
Monday, February 29th, 2016
Via Bloomberg:
February 29, 2016 — 8:01 PM EST
Updated on February 29, 2016 — 8:20 PM EST
Factory gauge hasn't been at a weaker level for seven years
Services index slips to lowest point since December 2008
China’s official factory gauge extended its stretch of deteriorating conditions to a record seven months while a ...
Posted in Uncategorized | Comments Off on Weak China Data
Monday, February 29th, 2016
"Pemex is facing short term financial difficulties" says the CEO of Pemex as he reports that the firm lost more than $30 billion in 2015. The Titanic faced a short term problem too when crew spotted an iceberg dead ahead.
Via the FT:
6 hours ago
by: Jude Webber in Mexico City
Pemex, Mexico’s ...
Posted in Uncategorized | Comments Off on Petroleum Producer Pemex’s Problem
Monday, February 29th, 2016
I have had my grandfather hat on most of day so have not followed this closely but there appears to be huge demand for this Exxon Mobil multi trancher. If you scroll down to the 30 year you will see it launched at T + 150. Guidance was 155 area ...
Posted in Uncategorized | Comments Off on Exxon Mobil Launch and Price Details
Monday, February 29th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
AUSTRALIA: As it has since last May, the RBA is expected to hold its Cash rate at 2.0%, according to the Bberg consensus. The AiG Performance of Manufacturing (PMI-type) Index was 51.5 in January, 7th consecutive month above 50, in contrast to most developed ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Monday, February 29th, 2016
Via the WSJ:
By Alex Frangos
Updated Feb. 29, 2016 5:40 a.m. ET
1 COMMENTS
China still has room to cut, but it may not be having much effect other than hiding the economy’s pain.
The People’s Bank of China waited until the Group of 20 financial bigwigs were safely out of Shanghai to resume ...
Posted in Uncategorized | Comments Off on China Inflection Point
Monday, February 29th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Baker's Dozen - 13 Items that Should be on Your Radar Screen
- The year has begun on a tumultuous note, but three sources of stress have eased
- We identify 13 things that investors will be watching in the week ahead
Price action: The ...
Posted in Uncategorized | Comments Off on FX
Monday, February 29th, 2016
The 10 year Treasury continues to cheapen versus Bunds. I clocked the spread at 163 basis points this morning. I had marked that spread as narrow as 140 basis points on Feb 11 when the 10 year US traded at 1.58.
Breakeven inflation rates also continue to march wider. The recent ...
Posted in Uncategorized | Comments Off on Overnight Treasury Market Musings
Monday, February 29th, 2016
Via Bloomberg:
Inflation rate at minus 0.2% in February vs 0% forecast
ECB to review stimulus program at March 9-10 meeting
The inflation picture in the euro area deteriorated in February, giving European Central Bank policy makers more bad news to digest just a week before their next meeting.
Consumer prices in the 19-nation bloc ...
Posted in Uncategorized | Comments Off on EuroZone Inflation Sinks
Monday, February 29th, 2016
Via Bloomberg:
China Cuts Reserve Ratio in Latest Step to Support Growth
2016-02-29 10:05:08.123 GMT
By Tan Hwee Ann
(Bloomberg) -- China’s central bank cut the amount of cash
the nation’s lenders must hold as reserves, stepping up efforts
to cushion an economic slowdown amid plunging stock prices and a
weakening currency.
The required reserve ratio for the ...
Posted in Uncategorized | Comments Off on China Cuts Reserve Requirements
Sunday, February 28th, 2016
This Bloomberg story reports that hedge funds hold their largest positions long the 10 year note contract since April 2013. That is somewhat ominous and worrisome (if you are one of the aforementioned longs) as it was in May 2013 that the first cracks appeared and the taper tantrum began ...
Posted in Uncategorized | Comments Off on Crowded Trade