Archive for October, 2016

FX

Thursday, October 27th, 2016

Via Marc Chandler at Brown Brothers Harriman: Rising Yields Remain the Main Driver The driving force in FX markets is the continued climb in interest rates While the ECB is widely expected to announce its changes at the December meeting, the BOJ's Kuroda all but said not to expect any action ...

Gilt Yields Climbing

Thursday, October 27th, 2016

Via Bloomberg: October 27, 2016 — 5:30 AM EDT   Money markets show diminishing chance of rate cut in 2017 Carney this week said there are limits to inflation tolerance U.K. government bonds fell, sending yields to the highest since Britons voted to leave the European Union, as investors reassessed the future path ...

Credit Pipeline

Thursday, October 27th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 5 Expected to Price, Domestics to Be Added 2016-10-27 09:43:57.66 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Japan Bank for International Cooperation (JBIC) A1/A+, to price $benchmark 2-part deal, via BAML/JPM/Miz/Nom * 5Y, guidance MS +64 area * 10Y, guidance MS +65 area * EQUATE Petrochemical (EQUATE) Baa2/BBB+, to price ...

No Surprise Brexit Like Outcome in US Election

Thursday, October 27th, 2016

That is the belief of analysts at Goldman Sachs. Via Barrons: Goldman Sachs: Election Won’t End Like Brexit The polls suggest big differences between the U.S. presidential race and the surprise U.K. referendum. By Alec Phillips Oct. 26, 2016 4:02 p.m. ET Comparisons between the surprise outcome in the UK referendum vote earlier this year and the ...

Market Based Inflation Expectations

Thursday, October 27th, 2016

TIPS bonds which measure market based measures of inflation expectation are enjoying their day in the sun. One month ago (September 27) 5 year BEs stood at 145. As I compose this electronic missive that metric trades at 163. Similarly 10s have moved from 157 to 173 and 30s have ...

Ignoring Brexit

Thursday, October 27th, 2016

Via Bloomberg: U.K. Growth Shows an Economy Resilient to Brexit Jill Ward jillianfward October 27, 2016 — 4:30 AM EDT Updated on October 27, 2016 — 4:53 AM EDT The U.K. economy grew faster than economists forecast in the third quarter, with services single-handedly ensuring resilience against any ...

FX

Wednesday, October 26th, 2016

Via Marc Chandler at Brown Brothers Harriman: Euro and Yen Extend Recovery The US dollar's upside momentum reversed in North America yesterday and it has been sold in Asia and Europe The Australian dollar leads the majors higher, helped by a slightly firmer than expected Q3 CPI Apple reported its first ...

Possible Severe Steps at DeutscheBank

Wednesday, October 26th, 2016

You cant take bank stock to the super market and buy bread and milk for the children nor can you take it to a Porsche dealer in Greenwich and buy a new car. Via Bloomberg: Options said to include giving shares in non-core unit or bank CEO Cryan is seeking to ...

Credit Pipeline

Wednesday, October 26th, 2016

Via Bloomberg: IG CREDIT PIPELINE: 3 Set to Price, More Names Expected 2016-10-26 09:37:19.816 GMT By Robert Elson (Bloomberg) -- Expected to price today: * Lukoil International Finance (LUKOIL) Ba1/BBB-, to price $benchmark 144a/Reg-S 10Y, via managers C/JPM; IPT 5.00% area * European Bank for Reconstruction & Development (EBRD) Aaa/AAA, to price $1b Global 5Y, via BAML/C/HSBC/TD; guidance MS +21 ...

Early FX

Wednesday, October 26th, 2016

Via Kit Juckes at SocGen: 1.75%  - just a number but one that does a decent job of sucking the energy out of markets. 10-year Treasury yields are back in no-man's land at 1.75%, oil prices are back down with Brent below USD 50/bbl on concerns that output reductions will be ...