Archive for June, 2016

Early FX

Sunday, June 5th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h10a7bc90,1735e441,1735e442&p1=136122&p2=49309450538ec6fc57981a440fcbfbef> Payrolls -just another brick in the wall If you're looking for an excuse to explain the softness of the US May employment data, your best bet is ‘it was just one month'. The entrails of the data point to broad-based softness. Employment slowed to 1.7% y/y. At ...

Learning About Duration

Saturday, June 4th, 2016

Via Bloomberg: Jump in Treasury yields may hurt bondholders more than crisis ‘Significant distress’ seen with central bank tightening Lurking in the bond market is a $1 trillion reason for the Federal Reserve to go slow on interest-rate increases. That’s how much bondholders stand to lose if Treasury yields rise unexpectedly by ...

Mester on Rate Hike And Jobs Data

Saturday, June 4th, 2016

Via Bloomberg: The Federal Reserve should raise interest rates gradually despite weak jobs data, Fed Cleveland Bank President Loretta Mester said. U.S. economic growth is picking up, inflation is moving toward target and the country is at full employment, Mester told reporters in Stockholm on Saturday. “I still believe that in order to ...

Labor Data Analysis

Friday, June 3rd, 2016

Via Millan Mulraine at TDSecurities: US: Weak Jobs Report Takes June Hike out the Picture ·         The pace of US jobs growth declined to a very sub-par 38K pace in May, falling well short of the market consensus for a more robust 160K rise. ·         Besides the disappointing headline print, the negative net revision ...

Corporate Bond Stuff

Friday, June 3rd, 2016

Via Bloomberg: IG CREDIT: Higher Secondary Trading Volume as Spreads Steady 2016-06-03 09:51:30.561 GMT By Robert Elson (Bloomberg) -- Secondary IG trading ended with a Trace count of $18.6b vs $17.2b Wednesday, $17.2b the previous Thursday. 10-DMA $15.4b; 10-Thursday moving avg $17.9b. * 144a trading added $3.7b of IG volume vs $3.1b Wednesday, $3b last Thursday * The most ...

Credit Pipeline

Friday, June 3rd, 2016

Via Bloomberg: IG CREDIT PIPELINE: Bayer Update; List Continues to Grow 2016-06-03 09:30:24.913 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Bayer (BAYNGR) A3/A-, said to secure $63b financing, via BAML/CS/GS/HSBC/JPM, for Monsanto (MON) A3/BBB+ bid; co. likely will issue $20-$30b bonds to refinance part of the bridge loan * Omega Healthcare Investors (OHI) Baa3/BBB-, to hold investor meeting, ...

FX

Friday, June 3rd, 2016

Via Marc Chandler at Brown Brothers Harriman: Currency Market Becalmed Ahead of US Jobs Data The US employment data is the main focus ahead of the weekend The Asian session featured three economic reports In Europe, the services and composite PMI was the main attraction The UK reported better than expected ...

Dealer Positions in Corporate Bonds

Friday, June 3rd, 2016

Via Bloomberg: IG CREDIT: Corporate Dealer Positions Fall, Led by 5Y-10Y Area 2016-06-03 10:21:09.537 GMT By Robert Elson (Bloomberg) -- Dealer positions in corporate bonds fell $2.6b to $15.9b as of May 25, according to Fed NY release. * $6.5b low Oct. 2015; high $45.9b March 2014. * Investment grade positions: * Very short issues rose $595m to ...

Dealer Positions

Friday, June 3rd, 2016

Via Bloomberg: AGENCIES: Dealer Positions in GSE Coupons Fell $1.6b 2016-06-03 10:26:24.702 GMT By Robert Elson (Bloomberg) -- Dealer positions in agency coupons fell $1.6b to $13.1b, as of May 25, according to Fed data. * $9.1b seen 12/30/2015 was a new low for the series that began in April 2013 * $46.5b 4/17/2013 was the high * Discount ...

DoveSpeak

Friday, June 3rd, 2016

Via Bloomberg: Chicago Fed chief also sees case for two 2016 rate increases More than two could cause financial-market turmoil, he says The Federal Reserve should consider holding off on additional interest-rate increases until inflation rises to the U.S. central bank’s target, said Federal Reserve Bank of Chicago President Charles Evans. “In ...