Richard's Feed
Dec 16, 2014

Taste for bitter, sour cocktails reviving bygone drinks

NEW YORK (Reuters) – Cosmopolitan and other sweet cocktails may still rule, but a revival of drinks flavored with bitters and laced with vinegar is catching on beyond trendy bars and lounges.

Beverage experts say bartenders are looking for inspiration with less sugary concoctions that are decades, even centuries, older than the Manhattan and Old-Fashioned.

Dec 12, 2014

U.S. TIPS inflation rates fall as oil tumbles

NEW YORK, Dec 12 (Reuters) – The U.S. bond market’s gauges
on inflation expectations fell on Friday as oil resumed its
recent slump with U.S. prices hitting fresh five-year lows below
$58 a barrel due to worries about global oversupply and weak
demand.

The yield gap between five-year TIPS and regular five-year
Treasuries fell to 1.15 percentage points in late trading, down
nearly 10 basis points from Thursday, Tradeweb data showed.

Dec 12, 2014

Free-falling oil intensifies pain for U.S. inflation bonds

NEW YORK (Reuters) – Holders of U.S. inflation bonds are feeling the pain as tumbling oil prices intensify fears of global disinflation and a possible interest rate increase by the Federal Reserve next year.

Treasury Inflation-Protected Securities, commonly known as TIPS, become more popular when investors sense inflation is quickening. They performed well in the first half of the year, but due to global growth worries and the fall in oil, expectations for price increases have diminished, eroding the allure of these bonds.

Dec 11, 2014

U.S. 30-year bond sale fetches strongest bid in 2 years

NEW YORK, Dec 11 (Reuters) – Investors scrambled on Thursday
for $13 billion worth of 30-year U.S. Treasury debt, as demand
for the longest maturity U.S. government bond was the strongest
in nearly two years, Treasury data showed.

Demand for longer-dated Treasuries has intensified in recent
days as tumbling oil prices and disappointing
data in Asia and Europe heighten anxiety about global
disinflation and slowing growth.

Dec 8, 2014

U.S. stocks stumble, oil falls to 5-year lows

NEW YORK, Dec 8 (Reuters) – U.S. and European stocks fell on
Monday after weak Chinese and Japanese data stoked worries about
slowing global economic growth, while oil prices sank to
five-year lows on expectations of oversupply into 2015.

The euro sagged to 2-1/2-year lows against the dollar after
European Central Bank policymaker Ewald Nowotny warned of a
“massive weakening” of the euro zone economy and said the
purchase of state bonds could provide a boost. His comments came
just days after Standard and Poor’s downgraded its credit rating
on Italy, the bloc’s third-largest economy, to a level just
above junk status.

Dec 8, 2014

U.S. Fed’s move seen soaking up bank excess reserves

NEW YORK (Reuters) – The U.S. Federal Reserve’s introduction of term reverse repurchase agreements on Monday will likely help hold down the level of banks’ excess reserves, analysts said, as it tests various tools to prop up interest rates when it decides to tighten policy.

On Monday, the U.S. central bank awarded $50 billion in term reverse repos (RRP) in the first of four weekly test operations which it will pay Wall Street dealers, money market funds, mortgage finance agencies and other qualified participants an interest rate of 0.08 percent for them to borrow its Treasuries holdings for 28 days.

Dec 8, 2014

U.S., European stocks fall; oil hits five-year low

NEW YORK (Reuters) – U.S. and European stocks fell on Monday after weak Chinese and Japanese data stoked worries about slowing global economic growth, while oil prices sank to five-year lows on expectations of oversupply into 2015.

The euro sagged to 2-1/2-year lows against the dollar after European Central Bank policymaker Ewald Nowotny’s warned of a “massive weakening” of the euro zone economy and said the purchase of state bonds could provide a boost. His comments came just days after Standard and Poor’s downgraded its credit rating on Italy, the bloc’s third largest economy, to a level just above junk status.

Dec 5, 2014

U.S. TIPS breakeven rates stuck at recent lows

NEW YORK, Dec 5 (Reuters) – The U.S. bond market’s gauges on
inflation expectations were stuck at their lowest in over three
years on Friday as upbeat domestic jobs data didn’t dispel
worries about disinflationary pressure due to falling oil prices
and economic woes abroad.

The government’s latest snapshot on the labor market
signaled some upward pressure on wages, which has largely been
absent during the current economic recovery and had held
inflation below the Federal Reserve’s 2 percent
target.

Dec 3, 2014

U.S. TIPS breakeven rates stabilize as oil prices rise

NEW YORK (Reuters) – The U.S. bond market’s gauges of inflation expectations stabilized on Wednesday afternoon, holding above their lowest levels in over three years, as domestic oil prices rose on data that showed a surprise drop in crude inventories. [O/R]

Bargain-hunting and encouraging U.S. economic data helped stem the weakness in Treasury Inflation-Protected Securities (TIPS), analysts and traders said.

Dec 2, 2014

Scramble for cash in U.S. intensifies as year-end looms

NEW YORK, Dec 2 (Reuters) – Cash hoarding by banks,
securities dealers and asset managers in the United States is in
full swing with signs that the year-end ritual might be more
intense than years past.

In the final weeks of every year, the demand for cash
typically heightens as financial companies rush to assemble the
money needed to bridge the period into the new year. This year,
however, tighter bank regulations and heavy redemptions by
investors from mutual and hedge funds have ratcheted up the
urgency, analysts said.

    • 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