Archive for June, 2016

Corporate Bond Allocations at Record High

Wednesday, June 8th, 2016

This Bloomberg story would lead one to suppose that if you know how many corporate bonds you own,then you don't own enough! Via Bloomberg: IG CREDIT: New Record High for Client Allocations to Corporates 2016-06-08 16:49:47.369 GMT By Robert Elson (Bloomberg) -- Client allocations to corporate bonds rose to 36.4% in the latest week, according to ...

Dearth of 10 Year Debt for (Once) Dominant Dealers

Wednesday, June 8th, 2016

Via Ian Lyngen at CRT Capital: *** The auction was strong with a 0.4 bp stop-through and non-dealer bidding at 80.8% vs. 75% norm *** * 10-year auction stops at 1.702% vs. 1.706% 1-pm bid WI. * Dealers were awarded 19.2% vs. 25% average of last four 10-year Reopenings. * Indirects get 73.6% vs. ...

Ten Year Note Auction Preview

Wednesday, June 8th, 2016

Via Ian Lyngen at CRT Capital: We are cautiously optimistic about this afternoon's 10-year auction and expect non-dealer interest to be significant (average is 75% for this benchmark) and see the risks skewed toward a stop-through  The dive in global yields to record lows has refocused the market on interest rate ...

Paying Up for Ten Year Notes

Wednesday, June 8th, 2016

Via Bloomberg: U.S. 10-Year Treasury Demand Highest in 50 Years Before Auction 2016-06-08 07:36:35.472 GMT By Wes Goodman (Bloomberg) -- Treasury 10-year notes are in the highest demand in half a century by one measure as investors prepared to bid at a $20 billion sale of the securities Wednesday. The so-called term premium dropped to negative 0.47 percentage ...

Long End Flatteners the Way to Go

Wednesday, June 8th, 2016

This is an excerpt from a note written by Steve Liddy, a friend and former colleague. It is from a longer piece but the graphs he employs do not translate well on to my very low rent blog. That is my fault and not Steve's. Via Steve Liddy: Not overly scientific here…but, ...

FX

Wednesday, June 8th, 2016

Via Marc Chandler at Brown Brothers Harriman: Currencies Broadly Stable, but Greenback is Vulnerable Japan's Q1 GDP was revised to 1.9% (annualized) from 1.7% China's May trade surplus stood at $49.98 bln UK reported stronger than expected IP The South African economy contracted much more than expected in Q1; Fitch affirmed ...

Early FX

Wednesday, June 8th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10ad4a5f,173ec089,173ec08a&p1=136122&p2=0da585090c7aff2ac357e6294dab1d42> I fear there should be a disclaimer on this morning's note: It's a bit long, quite verbose and largely lacking in interesting ideas. But apart form that.... The S&P 500 made a dash towards its all-time highs yesterday before global risk sentiment hit a speed bump in ...

Credit Pipeline

Wednesday, June 8th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 5 to Price as List Grows Longer 2016-06-08 10:00:22.858 GMT By Robert Elson (Bloomberg) -- Set to price today: * Asian Development Bank (ASIA) Aaa/AAA, to price at least $500m 5Y FRN, via managers BAML/C; IPT 3ML +19 area * FMS Wertmanagement (FMSWER) Aaa/AAA, to price $bench Global 5Y, via BNP/Barc/DB/GS; guidance MS ...

Some Corporate Bond Stuff

Wednesday, June 8th, 2016

Via Bloomberg: 2016-06-08 10:27:18.253 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $16.9b vs $13.2b Monday, $16.8b the previous Tuesday. 10-DMA $15.3b; 10-Tuesday moving avg $17.6b. * 144a trading added $4.6b of IG volume, the highest since $5.3b March 26, 2015, vs $2.4b Monday, $2.6b last Tuesday * The most active ...

What to Watch Today

Wednesday, June 8th, 2016

Via Bloomberg: WHAT TO WATCH: * (All times New York) * Economic Data * 7:00am: MBA Mortgage Applications, June 3 (prior -4.1%) * 10:00am: JOLTS Job Openings, April, est. 5.675m (prior 5.757m) * Central Banks * 5:00pm: Reserve Bank of New Zealand cash rate target, est. 2.25% (prior 2.25%) * 9:10pm: Reserve Bank of New Zealand’s Wheeler testifies to Parliament Select ...