Archive for October, 2016

Dealer Positions

Friday, October 7th, 2016

Via Bloomberg: IG CREDIT: Dealer Positions in 10Y, 30Y Rose Again 2016-10-07 10:39:21.110 GMT By Robert Elson (Bloomberg) -- Dealer positions in all corporate bonds fell $538m to $21.4b as of Sept. 28, according to Fed NY release. * $6.5b low Oct. 2015; high $45.9b March 2014 * Investment grade positions: * Very short issues fell $224m to ...

More FX

Friday, October 7th, 2016

Via Marc Chandler at Brown Brothers Harriman: Sterling Stabilizes After Harrowing Drop, Now Jobs Sterling again steals the limelight; there are two main schools of thought regarding flash crashes German, French, and Spanish industrial output data were consistently stronger than expected China is still on holiday, but September reserve figures ...

FX

Friday, October 7th, 2016

Via Kit Juckes at SocGen : Sterling was drunk yesterday, went completely mad late in the evening and probably has a terrible headache this morning. It probably ought to be left to sleep it off today, before the next moment of madness....                    ...

Sterling Flash Crash

Friday, October 7th, 2016

Via Bloomberg: Move ‘caught the market wrong-footed’: Westpac’s Killen Sterling dives 6.1% in minutes during Asia hours, snaps back During two chaotic minutes of Asian trading, the pound plunged the most since the Brexit referendum in June, with traders saying computer-initiated sell orders exacerbated the slump. The 6.1 percent drop drove sterling to ...

Seasonality of September Labor Report

Thursday, October 6th, 2016

Via Bloomberg: Nonfarm Payrolls Seasonality Points to USD Risk: Analysis 2016-10-06 14:26:56.6 GMT By TJ Marta (Bloomberg) -- USD risk skewed to downside for Friday’s nonfarm payrolls as report for Sept. has missed five of seven times since 2009; jobs more than 50k below estimates have regularly resulted in dollar decline, Bloomberg strategist TJ Marta writes. * Of seven ...

Employment Musings

Thursday, October 6th, 2016

Via Ian Lyngen: *** Anecdotes for this month’s employment report are biased stronger with 8 positive anecdotes vs. 3 negative ones.  In fact, we’d argue the details are even more positive as the negative proxies include the historical NFP bias and Empire State.  On the other hand, this month’s positive anecdotes ...

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Thursday, October 6th, 2016

Via Marc Chandler at Brown Brothers Harriman: The Dollar is Firm in Quiet Markets The US dollar is advancing against the major and most EM currencies We share four observations about the price action The deputy speaker of Italy's Chamber of Deputies and one of the leaders of the opposition ...

FX

Thursday, October 6th, 2016

Via Kit Juckes at SocGen: <http://www.sgmarkets.com/r/?id=h1178ac28,18882b77,18882b78&p1=136122&p2=522a43328923232ba1f70191a40e6eea> With US labour market data tomorrow, it feels like a day where markets could pause. In the wake of discussion about the ECB tapering its bond market purchases, today's account of last month's ECB ,meeting will take on added importance (at 12:30 BST) and at the ...

Credit Pipeline

Thursday, October 6th, 2016

Via Bloomberg: IG CREDIT PIPELINE: AFDB Set to Price; 2 Names Added to List 2016-10-06 09:29:02.66 GMT By Robert Elson (Bloomberg) -- Expected to price today: * African Development Bank (AFDB) Aaa/AAA, to price $500m Global 4Y FRN, via managers BMO/BAML/C; guidance 3ML +19 area LATEST UPDATES: * Republic of Namibia (REPNAM) Baa3/BBB-, to hold non-deal investor meetings Oct. 7-13, ...

Gloomy Fed Fischer

Thursday, October 6th, 2016

Via Bloomberg: Fed’s Fischer Says Central Banks Need Fiscal Help to Spur Growth Christopher Condon chrisjcondon October 5, 2016 — 7:15 PM EDT ‘Ultra-low interest rates are not necessarily here to stay’ Low pace of innovation may have dampened investment and saving   Federal Reserve Vice Chairman Stanley Fischer said both monetary and fiscal policy steps may be ...