Archive for February, 2016
Friday, February 12th, 2016
Bloomberg has an interesting article on trading of Treasuries by dealers in the broker market and with clients. The article summarizes a blog post at Liberty Street Economics which is the blog of the Federal Reserve bank of New York (at 33 Liberty Street).
Via Bloomberg:
Dealers Still Dominate UST Trading Despite ...
Posted in Uncategorized | Comments Off on Primary Dealer Trading
Friday, February 12th, 2016
Via the Good Folks at Bloomberg:
WHAT TO WATCH:
* (All times New York)
* Economic Data
* 8:30am: Import Price Index m/m, Jan., est. -1.5% (prior
-1.2%)
* Import Price Index y/y, Jan., est. -6.8% (prior
-8.2%)
* 8:30am: Retail Sales Advance, Jan., est. 0.1% (prior
-0.1%)
* Retail Sales Ex Auto, Jan., est. 0.0% (prior -0.1%)
* Retail Sales ...
Posted in Uncategorized | Comments Off on What to Watch Today
Friday, February 12th, 2016
Via the WSJ:
As crude prices slide toward $25 a barrel, many oil companies have little choice but to start making the steep cost cuts they have avoided up until now, jettisoning every well that can’t break even or isn’t needed to keep the lights on.
“Folks are coming to grips with ...
Posted in Uncategorized | Comments Off on Cost Cutting at Oil Companies
Friday, February 12th, 2016
An excerpt from a Bloomberg article by Bob Elson:
* Bloomberg US IG Corporate Bond Index OAS at 220.0, another
new wide since Jan. 2012, vs 215.0; 129.6 was 2015 low
* 2014 high/low 144.7/102.3
* BofAML IG Master Index at +221, another new wide for 2015/16
and widest level since June 2012, vs +217; ...
Posted in Uncategorized | Comments Off on Spread Levels
Friday, February 12th, 2016
Via Marc Chandler at Brown Brothers Harriman:
Pre-Weekend Reprieve in Europe, Return of China on Monday is Worrisome
- After another difficult Asian session, the capital markets have again stabilized in Europe
- The eurozone expanded by 0.3% in Q4 15, as expected for a 1.5% year-over-year pace
- Talk that the MOF's ...
Posted in Uncategorized | Comments Off on FX
Friday, February 12th, 2016
WSJ reporters describe the conundrum of economies which require negative rates but those same negative rates may hobble bank lending. Click here for a chart which I edited out of the article but which is a picture that as they say is worth 1000 words.
Via the WSJ:
‘Doom Loop’ Fears Cast ...
Posted in Uncategorized | Comments Off on The Doom Loop
Friday, February 12th, 2016
Via Bloomberg:
The euro-area economy maintained momentum at the end of 2015, though divergences across the region highlight ongoing struggles as global market turmoil threatens the outlook.
The 0.3 percent expansion in the fourth quarter was driven by Germany, its largest economy, which grew at the same pace. Growth in Italy slowed ...
Posted in Uncategorized | Comments Off on European Economy
Friday, February 12th, 2016
Via the FT:
After a dire week, European bank stocks are rebounding, with German banks leading the way.
Commerzbank shares are flying high this morning. The German lender has now extended its early morning gains and is up 16.9 per cent, after announcing its first dividend since 2007.
Deutsche Bank, the focus of ...
Posted in Uncategorized | Comments Off on Banks Rebound
Friday, February 12th, 2016
Via Kit Juckes at SocGen:
Overnight, mostly the same old story as the Nikkei sheds another 4.8% to be down 21% ytd. USD/JPY is duly lower. We're sticking with GBP/JPY shorts, but tightening stops, because that seems prudent. Japanese weekly foreign bond buying data show the biggest outflow in nearly 2 ...
Posted in Uncategorized | Comments Off on Overnight FX
Friday, February 12th, 2016
Equity markets in Europe have rebounded and futures indicate a sanguine outlook for US equities. Japan took a battering as concerns about yen strength abound.
In the Treasury market I have heard of an eclectic group of end users selling the 5 year through 10 year sector. Central banks bought 10 ...
Posted in Uncategorized | Comments Off on .What a Difference a Day Makes