Richard's Feed
Nov 9, 2015

U.S. bonds fall on rate-hike bets, supply

NEW YORK, Nov 9 (Reuters) – U.S. Treasuries prices fell on
Monday with two-year yields hovering at their highest levels in
5-1/2 years as traders raised bets the Federal Reserve will
raise interest rates in December in the wake of a strong October
jobs report.

This week’s government and corporate bonds supply stoked
further selling, pushing five-year yields to their highest in
nearly five months and 10-year yields to their highest in over
three months.

Nov 6, 2015

Record negative spreads roil U.S. swaps market

NEW YORK, Nov 6 (Reuters) – A dip in U.S. interest rate
swaps that led to negative spreads in recent weeks has raised
concerns that other parts of the bond market could be disrupted
and raise borrowing costs for the U.S. government.

The decline in swap rates, to below comparable U.S. Treasury
yields, was so acute on Thursday that some analysts called it a
“flash” event, recalling the U.S. stock market’s “flash crash”
in May 2010 when the Dow Jones industrial average plunged and
rebounded in just 36 minutes.

Nov 2, 2015

Morgan Stanley CEO Gorman elected to N.Y. Fed board

NEW YORK (Reuters) – The Federal Reserve’s New York branch
on Monday named James Gorman, the chief executive of Wall Street
bank Morgan Stanley, to its board of directors for a
three-year term beginning in January.

The appointment, however, may raise questions after the New
York Fed, the central bank’s eyes and ears on Wall Street, was
criticized in recent years for what some see as a too-cozy
relationship with the big banks it supervises.

Oct 29, 2015

U.S. bond prices tumble on GDP data, corporate supply

NEW YORK, Oct 29 (Reuters) – U.S. Treasuries prices fell on
Thursday with benchmark yields jumping to their highest in a
month as the U.S. economy expanded in the third quarter on solid
consumer spending, reinforcing chances the Federal Reserve may
hike interest rates in December.

A wave of corporate supply led by a huge multi-part deal
from software giant Microsoft exacerbated the market sell-off
with dealers dumping Treasuries to hedge the bonds they were

Oct 29, 2015

U.S. bond prices fall on U.S. Q3 GDP data

NEW YORK, Oct 29 (Reuters) – U.S. Treasuries prices fell on
Thursday with benchmark yields rising to their highest in a
month as the U.S. economy expanded in third quarter on solid
consumer spending, buttressing the chances the Federal Reserve
may hike interest rates in December.

Consumer spending, which accounts for more than two-thirds
of U.S. economic activity, grew at a 3.2 percent rate, but its
contribution to overall domestic growth was undercut by a sharp
cutback in inventory building, the Commerce Department said.

Oct 28, 2015

U.S. T-bill rates rise before debt limit vote

NEW YORK, Oct 28 (Reuters) – Interest rates on U.S. Treasury
bills rose on Wednesday in advance of a congressional vote on a
federal budget and the debt ceiling, which would allow the
government to issue more T-bills before it exhausts its
borrowing limit next week.

Six-month T-bill rates reached their highest in over five
weeks, while one-year rates hit their highest in 3-1/2 weeks.

Oct 27, 2015

U.S. Nov T-bill rates fall on tentative U.S. debt deal

NEW YORK, Oct 27 (Reuters) – Interest rates on U.S. Treasury
bills due in November slipped into negative territory on Tuesday
as investor demand returned in the wake of a tentative deal on a
two-year U.S. budget deal and an extension of the federal debt

Interest rates on T-bills due in 2016, however, rose on the
day in anticipation the Treasury Department will ramp up
supplies to compensate for the reduction it had embarked on
since September, analysts said.

Oct 27, 2015

Michelin awards stars to fewer Chicago restaurants

Oct 27 (Reuters) – Michelin handed out its coveted stars to
22 Chicago area restaurants in its latest guide on the city’s
dining scene, which will be released on Wednesday. The 22
restaurants are two fewer than in the previous Chicago edition.

Despite the drop due partly to closures, Chicago remains a
vibrant U.S. dining destination with local chefs experimenting
with ingredients and techniques, Michael Ellis, the
international director of Michelin Guides, said on Tuesday.

Oct 27, 2015

Dollar steady ahead of Wednesday’s Fed statement

NEW YORK, Oct 27 (Reuters) – The dollar held firm against a
basket of currencies on Tuesday as traders await the Federal
Reserve’s decision on whether to raise interest rates by
year-end amid evidence the U.S. economy has slowed in recent

The Norwegian crown, Canadian dollar and other currencies
that are sensitive to energy prices fell against the greenback
as Brent crude futures in London fell to their lowest since
mid-September on anxiety about oversupply.

Oct 26, 2015

U.S. bond prices gain as softer stocks revive bids

NEW YORK, Oct 26 (Reuters) – U.S. Treasuries prices rose on
Monday, with benchmark yields retreating from two-week highs as
stock market losses and disappointing data on domestic new home
sales rekindled demand for low-risk government bonds.

Bonds’ gains were limited by typical investor caution ahead
of a two-day Federal Reserve policy meeting and sales of
existing holdings to make room for supplies of five-year and
seven-year notes later this week.

    • 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."
    • Follow Richard