Archive for June, 2016

Auction Previews

Monday, June 6th, 2016

Via TDSecurities: Treasury will auction a total of $56bn this week, selling $24bn in 3s on Tuesday, $20bn in reopened 10s on Wednesday, and $12bn in reopened 30s on Thursday. With $32bn of holdings maturing at mid-month settlement, net cash raised at the sale will total $24bn. With no SOMA holdings ...

Dissecting Yellen

Monday, June 6th, 2016

Via Stephen Stanley at Amherst Pierpont Securities: Chair Yellen took a relatively upbeat tone in her speech today.  In fact, to reprise an analogy that I used to analyze her last speech in late March, she characterized the growth, employment, and inflation “glasses” as mostly full, albeit with an appropriately sober ...

Commodity Rebound

Monday, June 6th, 2016

Via Bloomberg: June 6, 2016 — 6:29 AM EDT The four-year bear market that pushed commodities to the lowest level in a quarter century is coming to end as supply constraints drive a recovery in everything from soybeans to zinc. The Bloomberg Commodity Index, which tracks returns from 22 raw materials, is on ...

Low Rates, Dividend Payments and Capital Investment

Monday, June 6th, 2016

Greg Ip at the WSJ does and excellent job of linking the aforementioned financial trio: By Greg Ip Updated June 5, 2016 12:55 p.m. ET 152 COMMENTS One of the great mysteries of the recovery is why low interest rates have done so little to lift business investment. After all, that is supposed to be ...

What to Watch for Today

Monday, June 6th, 2016

Via Bloomberg: * (All times New York) * Economic Data * 10:00am: Labor Market Conditions Index Change, May, est. -0.8 (prior -0.9) * Central Banks * TBA: Fed’s Rosengren speaks in Helsinki * 12:30pm: Fed’s Yellen speaks in Philadelphia * Supply * 11:00am: U.S. to announce plans for auction of 4W bills * 11:30am: U.S. to sell $31b 3M bills, ...

Credit Pipeline

Monday, June 6th, 2016

Via Bloomberg: IG CREDIT PIPELINE: ITC, Ukraine Added, List Grows Further 2016-06-06 09:38:18.513 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * ITC Holdings (ITC) Baa2/BBB+, filed an automatic debt securities shelf; last issued May 2014 * USAID Ukraine (AID) heard to be in the works with possible full faith & credit deal * Bayer (BAYNGR) A3/A-, said to ...

Some Corporate Bond Stuff

Monday, June 6th, 2016

Via Bloomberg: IG CREDIT: Trading Volume Falls as Issuance Takes a Rest 2016-06-06 09:43:37.189 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $12.1b Friday vs $18.6b Thursday, $5.3b the previous Friday, a half-day session in front of Memorial Day weekend. * 10-DMA $14.8b; 10-Friday moving avg $12.4b * 144a trading added ...

FX

Monday, June 6th, 2016

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead The market responded dramatically to the shockingly poor jobs growth We are reluctant, with the current information set, to rule out a July hike Yellen speaks shortly after midday in the US on Monday The Reserve Bank of Australia ...

Primary Dealers and Treasury Auctions

Sunday, June 5th, 2016

Via Bloomberg: Alexandra Scaggs alexandrascaggs Eliza Ronalds-Hannon @elizahannon June 5, 2016 — 7:00 PM EDT Primary dealers’ share slumps to an unprecedented 30% Retreat comes amid U.S. investigation of pre-auction trading   When U.S. officials broached the question of more oversight in Treasuries this year, Wall Street pushed back by pointedly reminding them of the “critical role” it plays ...

Student Loans as Economic Depressant

Sunday, June 5th, 2016

Via the WSJ: By Josh Mitchell Updated June 5, 2016 3:01 p.m. ET 169 COMMENTS The U.S. government over the last 15 years made a trillion-dollar investment to improve the nation’s workforce, productivity and economy. A big portion of that investment has now turned toxic, with echoes of the housing crisis. The investment was in ...