Archive for May, 2016
Wednesday, May 25th, 2016
Via the WSJ:
By Viktoria Dendrinou and
Gabriele Steinhauser
May 24, 2016 8:59 p.m. ET
BRUSSELS—Eurozone finance ministers and the International Monetary Fund patched together a deal in the early hours of Wednesday that clears the way for fresh loans for Greece and sets out how the country could get debt relief in the ...
Posted in Uncategorized | Comments Off on Greek Tragedy Continues
Wednesday, May 25th, 2016
Via Reuters:
BFW 05/25 09:44 *ECB CORP BONDS PURCHASES SAID TO START SLOWLY IN JUNE: REUTERS
BFW 05/25 09:42 *ECB SAID AIMING TO BUY EU5B-EU10B/MO OF CORP. BONDS: RTRS
Posted in Uncategorized | Comments Off on ECB Corporate Bond Purchases
Wednesday, May 25th, 2016
Trading revenues have been difficult to come by of late particularly as fixed income trading revenues enter a period of secular stagnation. The WSJ details one strategy employed by major banks to increase revenue and that is block trading of equities. Dealers by large blocks of equity at a small ...
Posted in Uncategorized | Comments Off on Augmenting the Bonus Pool
Wednesday, May 25th, 2016
Via Bloomberg:
Strengthening greenback is ending period of stability for yuan
China’s currency still above January low as no panic seen
China’s central bank weakened its currency fixing to the lowest since March 2011 as the dollar strengthened.
The reference rate was set 0.3 percent weaker at 6.5693 per dollar. A gauge ...
Posted in Uncategorized | Comments Off on Weak Yuan
Wednesday, May 25th, 2016
Via Kit Juckes at SocGen:
Solid US economic data yesterday and a ‘risk-on' day in Asia today; there ought to be smiles at the Federal Reserve: So far, so good for their plan to persuade markets to price in a faster pace of rate hikes without throwing the baby (and the ...
Posted in Uncategorized | Comments Off on Early FX
Tuesday, May 24th, 2016
Bloomberg reports that the ECB has hoovered in most available bonds as it pursues its aggressive stimulus program.
Via Bloomberg;
It’s like building ‘a boat in the open sea,’ says Rabobank
Germany could face hurdle in executing QE plan: DZ Bank
The biggest buyer of European government bonds may have to start ...
Posted in Uncategorized | Comments Off on Running Out of Bonds
Tuesday, May 24th, 2016
The WSJ reports that an unusual confluence of circumstances (low levels of capital and derivative accounting) might necessitate another government bailout of either FNMA or Freddie Mac (or of both agencies).
Via the WSJ:
By Joe Light
May 24, 2016 3:34 p.m. ET
Eight years after the financial crisis, the core businesses of mortgage ...
Posted in Uncategorized | Comments Off on Deja Vu All over Again
Tuesday, May 24th, 2016
Via Robert Sinche at Amherst Pierpont Securities:
CANADA: The Bberg consensus expects the Bank of Canada to keep its policy rate at 0.50% but likely scale back some of its optimistic rhetoric from last month’s review and forecasts.
S. KOREA: The May Consumer Confidence Index will follow a 101 reading in April ...
Posted in Uncategorized | Comments Off on Overnight Data Preview
Tuesday, May 24th, 2016
I have been away from the markets for a good chunk of the day. This is a worthwhile read from Stephen Stanley on the new home sales data. This was the strongest report for this series since January 2008. Mr Stanley describes today's report as "spectacular".
Via Stephen Stanley at Amherst ...
Posted in Uncategorized | Comments Off on New Home Sales
Tuesday, May 24th, 2016
Via TDSecurities:
Treasury will auction a total of $88bn this week, selling $26bn in 2s on Tuesday, $34bn in 5s on Wednesday, and $28bn in 7s on Thursday. With $70.6bn maturing at month-end settlement, net cash raised at the auction will total $17.4bn. Treasury will also auction $13bn in reopened FRNs ...
Posted in Uncategorized | Comments Off on Treasury Auctions Previewed