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Oct 20, 2014

U.S. bond prices rise on view on Fed, Europe worries

NEW YORK, Oct 20 (Reuters) – U.S. Treasuries prices rose on
Monday on worries about Europe’s drag on the U.S. economy and
more bets the Federal Reserve might not raise interest rates
until late 2015.

Safe-haven demand stemming from anxiety over the spreading
of the Ebola virus and fighting in the Middle East have
persisted to keep benchmark yields not far above 2 percent.

Oct 20, 2014

Prices rise on European stock losses, U.S. earnings

NEW YORK, Oct 20 (Reuters) – U.S. Treasuries prices rose on
Monday as weakness in U.S. and European equities markets and
bets the Federal Reserve would delay possible plans to raise
interest rates in 2015 stoked bids for low-risk government debt.

Safe-haven demand stemming from anxiety over the spreading
of the Ebola virus and Islamic State-led fighting in the Middle
East has persisted to keep benchmark yields not far above 2
percent.

Oct 17, 2014

Speculative Eurodollar net shorts fall to lowest since February

By Richard Leong

(Reuters) – Speculators’ net bearish bets on Eurodollar futures earlier this week fell to their lowest since February before Wednesday’s roller-coaster session’s stampede to exit those bets, according to Commodity Futures Trading Commission data released on Friday.

Net speculative net shorts in Eurodollar futures, arguably the most widely used futures contract, fell to 915,783 contracts on Tuesday, 380,743 contracts less than 1.297 million a week earlier.

Oct 16, 2014

U.S. repo rate rises to highest since March

NEW YORK, Oct 16 (Reuters) – A key short-term U.S. interest
rate on Thursday reached nearly a seven-month high on demand to
finance a flood of Treasuries that hit the open market following
a massive stampede out of bearish bond bets the day before.

In the $5 trillion U.S. repurchase agreement market, the
overnight interest rate for banks and Wall Street firms to
borrow and fund their trades and positions rose as high as 0.27
percent before slipping to 0.20 percent in late trading. This
compared with 0.15 percent late on Wednesday, according to data
from ICAP.

Oct 16, 2014

Open interest drop signaled short-covering in U.S. bond market

NEW YORK (Reuters) – The huge decline in open interest in U.S. bond and Eurodollar futures signaled a scramble on Wednesday to exit bearish bets on U.S. Treasuries and interest rates, which knocked benchmark 10-year yields to 16-month lows, according to data from CME Group Inc (CME.O: Quote, Profile, Research, Stock Buzz).

Traders closed out nearly 581,000 interest rates and Treasury futures contracts worth $458.79 billion on the Chicago Mercantile Exchange and the Chicago Board of Trade.

Oct 15, 2014

Key U.S. short-term rate rises in bond market rally

NEW YORK, Oct 15 (Reuters) – A key short-term U.S. interest
rate rose to a two-month high on Wednesday, a glaring exception
on a day when global bond yields fell broadly in one of the most
volatile sessions in years because of a deteriorating outlook
for the global economy.

In the $5 trillion U.S. repurchase agreement market, the
overnight interest rate for banks and Wall Street firms to
borrow and fund their trades and positions rose to 0.14 percent
from 0.10 percent on Tuesday, according to data from ICAP.

Oct 14, 2014

U.S. TIPS breakeven rates fall on oil market selloff

NEW YORK, Oct 14 (Reuters) – U.S. bond market gauges on
inflation expectations fell sharply on Tuesday as tumbling oil
prices stoked worries about flagging domestic price growth that
would hurt the U.S. economy.

Oil prices in London ended near $85 a barrel, falling nearly
$4, which was its biggest single-day decline in more than two
years.

Oct 14, 2014

U.S. bond market rallies on global growth fears

NEW YORK, Oct 14 (Reuters) – Anxiety about a slowing global
economy stoked a rally in the U.S. bond market on Tuesday as
safe-haven bids for low-risk government debt sent benchmark
yields to their lowest level in 16 months.

Buying to close out previous bets on rising long-term U.S.
yields stoked demand for 30-year Treasuries bonds,
pushing their yield below 3 percent for the first time since May
2013.

Oct 12, 2014

U.S. TIPS market signals rising concerns about disinflation

NEW YORK, Oct 12 (Reuters) – For Federal Reserve officials
already worried about a persistent lack of U.S. wage and price
growth, one corner of the bond market may be suggesting even
more reason for alarm. The Treasury Inflation Protected
Securities (TIPS) market is suggesting price stagnation may be
just around the corner.

Slowing global growth, particularly because of weakness in
Europe, as well as a surging dollar and plunging oil prices,
have spurred selling in TIPS since late summer, disrupting a
comeback they had enjoyed in the first eight months of the year.

Oct 7, 2014

No disruption from cap in reverse repos -NY Fed’s Potter

NEW YORK, Oct 7 (Reuters) – There was no evidence of
disruption to the U.S. funds market from the recently
implemented cap on the amount of reverse repos, a key program
the Federal Reserve will use when it begins to raise interest
rates, the head of the Markets Group at the Federal Reserve Bank
of New York, Simon Potter, said on Tuesday.

The Federal Open Market Committee, the U.S. central bank’s
policy-setting group, last month imposed a $300 billion limit on
the fixed-rate overnight reverse repurchase program in which the
Fed pays participants including banks and money market funds to
borrow Treasuries that belong to the Fed.

    • About Richard

      "I am currently part of the U.S. Treasuries group based in New York, which covers the government debt market as well as interest rate derivatives. Previously, I was a specialist in housing and structured finance. Prior to joining the fixed income team, I had written extensively about the U.S. energy industry with focus on market and regulatory issues."
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