Archive for May, 2016

Making the Case for Rate Hikes

Thursday, May 12th, 2016

Via Bloomberg: Two Fed Officials Make Their Cases for Interest-Rate Increase 2016-05-12 20:24:26.121 GMT By Christopher Condon and Steve Matthews (Bloomberg) -- Two regional Federal Reserve presidents usually on opposing sides of the policy debate made separate but similar cases for an interest-rate increase, arguing that the central bank risks stoking an asset bubble by delaying action for ...

Fed Chided For Lack of Diversity

Thursday, May 12th, 2016

Via the FT: AN HOUR AGO by: Sam Fleming in Washington More than a hundred Democratic party lawmakers have written to Federal Reservechair Janet Yellen complaining of a lack of diversity within the central bank system and a leadership that is “overwhelmingly and disproportionately white and male”. The letter, signed by 11 senators and ...

Long Bond Auction

Thursday, May 12th, 2016

Via Ian Lyngen at CRT Capital: We are apprehensive about this afternoon's long-bond Refunding auction and are anticipating a tail - assuming that the modest intraday concession isn't enough of an incentive to attract overseas interest, which tends to be small for the 30-year sector.  Refunding 30-years have a long history ...

Unemployment Claims Debate

Thursday, May 12th, 2016

This will be successive research notes from Stephen Stanley  of Amherst Pierpont Securities regarding the claims data released this morning. Post Number One: Finally, a little intrigue in the jobless claims data.  The number of new filers jumped by 20,000 to 294,000 (on top of a 17K rise last week), the highest ...

FX

Thursday, May 12th, 2016

Via Marc Chandler at Brown Brothers Harriman: Dollar Mixed Ahead of BOE Decision The Bank of England decision will be out shortly The Eurozone reported much weaker than expected March IP The Norges Bank kept rates steady at 0.50%, as expected Japan reported March current account data After a nearly 24-hour ...

Corporate Bond Stuff

Thursday, May 12th, 2016

Via Bloomberg: IG CREDIT: Trading Steady, Takes Back Seat to Heavy Issuance 2016-05-12 10:00:11.263 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $17.1b vs $17.4b Tuesday, $17.9b last Wednesday. * 10-DMA $15.5b; 10-Wednesday moving avg $19.1b * 144a trading added $2.2b of IG volume vs $2.4b on Tuesday, $2.6b last Wednesday * ...

Credit Pipeline

Thursday, May 12th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 3 Set to Price, Expect Domestics to Be Added2016-05-12 09:38:55.424 GMTBy Robert Elson (Bloomberg) -- Set to price today: * European Bank for Reconstruction & Development (EBRD) Aaa/AAA, to price $500m Global 3Y FRN, via managers BMO/TD; IPT 3ML +11 area * Australia & New Zealand ...

Wider Swap Spreads Ahead

Thursday, May 12th, 2016

Via TDSecurities: TD Securities US Rates Strategy – Swap Spreads: Getting Ready to Go Long ·         May typically tends to be a heavy month for issuance of high grade corporate, SSA and GSE paper with Q1 earning season in the rearview mirror and ahead of the summer slowdown. May tends to account for approximately ...

Business Cycle Dynamics

Thursday, May 12th, 2016

Via Bloomberg: Obama, Bush faced contractions in first year in office Summers sees significant chance of downturn within three years Talk about a poisoned chalice. No matter who is elected to the White House in November, the next president will probably face a recession. The 83-month-old expansion is already the fourth-longest in ...

Yield Whores in a Frenzy

Thursday, May 12th, 2016

Via Bloomberg: Treasury 10-year sale sees record demand from indirect bidders Buyers also pounce on debt from Spain, Portugal, companies Whether you’re a government or a company in Europe, the U.S. or Asia, it’s a great time to sell bonds. Around the world, bidders are snapping up almost anything with a yield.   Auctions ...