Archive for January, 2017

Refunding Preview

Tuesday, January 31st, 2017

Via Bloomberg: UST REFUNDING PREVIEW: $62b Expected; Bill Supply in Focus 2017-01-31 15:57:55.937 GMT By Alexandra Harris (Bloomberg) -- February refunding announcement at 8:30am ET Wednesday may feature outlook for bill issuance, especially in light of debt-ceiling reinstatement March 16; next week’s auction sizes are expected to be unchanged from November refunding ($24b 3Y, $23b 10Y, $15b 30Y). * ...

Microsoft Final

Monday, January 30th, 2017

Via Bloomberg: PRICED: Microsoft Corp $17b Debt Offering Across 7 Tranches 2017-01-30 21:43:15.424 GMT By Lisa Loray (Bloomberg) -- Microsoft priced $17b across seven tranches. * Tranches (Guidance, IPT) * $1.5b 3Y (2/06/2020) at +40 * +45 (+/-5), +60a * Optional redemption; MWC * $1.75b 5Y (2/06/2022) at +50 * +55 (+/-5), +70a * Optional redemption: MWC; Par call 1mo prior ...

Overnight Data Drop

Monday, January 30th, 2017

Via Robert Sinche at Amherst Pierpont Securities: JAPAN: In advance of the BOJ meeting data will be released on December IP, Household Spending and the labor market. The Bberg consensus expects another 0.3% MOM rise in IP after a 1.5% surge in November, although YOY growth would slow to 3.0%. The ...

Microsoft Refunding

Monday, January 30th, 2017

This articles provides details on the mega multitranche ($17 billion) Microsoft offering. I think that circa 1980 the US Treasury  quarterly refunding was about $6 billion per quarter. Via Bloomberg: LAUNCH: Microsoft Corp $17b Debt Offering Across 7 Tranches 2017-01-30 18:09:33.469 GMT By Lisa Loray (Bloomberg) -- Total deal size $17b across seven tranches. * Tranches ...

MSFT Deal

Monday, January 30th, 2017

Microsoft selling as many maturities as possible it seems.   Via Bloomberg: NEW DEAL: Microsoft $Benchmark 3Y, 5Y, 7Y, 10Y, 20Y, 30Y, 40Y 2017-01-30 12:58:55.906 GMT By Brian Smith (Bloomberg) -- Expected to price today. * IPT: * 3Y (2/06/2020): +60a * 5Y (2/06/2022): +70a * 7Y (2/06/2024): +90a * 10Y (2/06/2027): +100a * 20Y (2/06/2037): +115a * 30Y (2/06/2047): +130a * 40Y (2/06/2057): ...

Greek Tragedy

Monday, January 30th, 2017

I received this article from a fully paid up subscriber who noted that 10 Year Greece bonds were wider by 34 basis points today. He did not note if that was against Bunds or Treasuries. Via Bloomberg: Greek Bonds' ECB Fantasy Faces Cold Reality of IMF Report: Gadfly 2017-01-30 13:21:20.573 GMT By Marcus Ashworth (Bloomberg ...

JPM on Treasury Supply

Monday, January 30th, 2017

Via Bloomberg: Treasury Coupon Auction Sizes to Grow This Year, JPM Says 2017-01-30 13:31:13.753 GMT By Elizabeth Stanton (Bloomberg) -- Two factors will cause U.S. financing needs “to rise significantly” -- bigger federal budget deficits, assuming $250b of fiscal stimulus through end of 2018, and Fed tapering reinvestments beginning in mid-2018, JPMorgan strategists led by Jay Barry say ...

FX

Monday, January 30th, 2017

Via Marc Chandler at Brown Brothers Harriman: Drivers for the Week Ahead Three major central banks meet in the week ahead There are several important reports that will give investors more insight into how the economies have begun the New Year Although the Lunar New Year holiday runs through the week, ...

Weekend Data Preview

Friday, January 27th, 2017

Via Robert Sinche at Amherst Pierpont Securities: JAPAN: After surging by 3.0% over the 3 months ended November, the Bberg consensus expects that Retail Sales dropped 0.5% MOM in December, a small giveback given recent gains. EURO ZONE: The set of monthly EC economic and confidence surveys are expected to hold recent ...

Durable Goods

Friday, January 27th, 2017

Via Stephen Stanley at Amherst Pierpont Securities: The headline December durable goods orders figure was disappointing, as both defense and aircraft bookings were softer than expected.  Defense orders more than reversed the 30% jump recorded in November, falling to the lowest level since June.  Aircraft bookings were projected to improve substantially, ...