Repo Market

Tyler Durden's picture

Asian Equities Tumble On Commodity Fears; US Futures Rebound After India "Unexpectedly" Eases More Than Expected

It was a tale of two markets overnight: Asia first - where all commodity hell broke loose - and then Europe (and the US), where central banks did everything they could to stabilize the already terrible sentiment.

Tyler Durden's picture

Foreign Central Bank Buying Jumps In Blistering 5 Year Auction

After yesterday's unexpectedly strong 2 Year auction, and coupled with the latest market selloff, there were few dark skies ahead of today's auction of $35 billion in 5 Year paper. Furthermore, suggesting today's auction would be very strong was today's repo market which saw the 5Y trading special at -0.15% on the curve, just begging for a short squeeze into the auction. That is precisely what happened.

Tyler Durden's picture

Demand Surges Into 10 Year Treasury Auction As Shorts Squeezed Again

The short squeeze into 10Y auctions never fails.

Tyler Durden's picture

Unmasking Of "Mystery Treasury Buyer" Has No Impact On "Uneventful" 3 Year Auction

The internals of the auction were solid if not groundbreaking: the Bid to Cover was 3.233, fractionally below the TTM average of 3.286, the Dealer take down of 41% was the highest since February, while Indirects ended up withe 51% of the takedown, above the 45.7% TTM average. Finally, Directs were awarded just 8.0% of the auction matching the lowest since February. In short: a perfectly average auction, one which did not attract particular attention for any one reason. Which is why, tomorrow's 10Y auction will be far more closely watched.

Tyler Durden's picture

Guest Post: Stanley Fischer Speaks - More Drivel From A Dangerous Academic Fool

With every passing week that money markets rates remain pinned to the zero bound by the Fed, the magnitude of the financial catastrophe hurtling toward main street America intensifies. When the next financial bubble crashes it can only be hoped that this time the people will grab their torches and pitchforks. Stanley Fischer ought to be among the first tarred and feathered for the calamity that he has so arrogantly helped enable.

Tyler Durden's picture

What Is The Reason For Today's Stunning Plunge In 2 Year Repo Rates?

What is going on here: is it just more seller than buyers, who are frontrunning an epic curve flattening or even inversion as may well happen once the Fed launches its rate hiking cycle? Or is something else happening behind the scenes. We ask because in addition to the normal selloff in cash and derivative products, something far more dramatic took place in the repo market where the repo rate on the 2Y just suddenly plunged out of nowhere.

Tyler Durden's picture

Gold And The Silver Stand-Off: Is The Selling Of Paper Gold And Silver Finally Ending?

In a January 2013 report “Report of the Working Group to Study the Issues Related to Gold Imports and Gold Loans by NBFCs”, the Reserve Bank of India estimated that the ratio of paper gold trading to physical gold trading is 92:1. That is a lot of unbacked paper gold instruments. This has almost entirely separated the “gold price”, such as it is (the clearing price for vast volumes of paper gold “representations” with a fractional backing) from the fundamental supply and demand dynamics for actual physical gold bullion.

As Mr L. famously quipped. "Ever get the feeling you’ve been cheated?"

Tyler Durden's picture

With Sweden's QE Officially Broken, The Riksbank Doubles Down: Lowers Rates Even More Negative; Boosts QE

Overnight the Riksbank confirmed that it neither learns from its own mistakes, nor reads BIS reports when at 9:30 CET, it shocked central bank watcher all of whom were expecting no rate change from the bank, and announced it is not only engaging in yet another rate cut, taking the key rate even further into record NIRP territory, from -0.25% to -0.35% but adding insult to broken QE injury, it would expand its QE by a further SEK 45 billion starting in September. The reason? Sweden is realizing it is losing the currency war (to a great extent due to its failed QE which is pushing bond yields higher and with it, its currency) and it needs to soak up even more collateral... which can barely be found.

Reggie Middleton's picture

As I Promised, the Nordic States' Central Bank QE Program Slides Backwards and Starts To Collapse

If you jump off of a make believe cliff, don't be surprised when you hit the reality of the ground! Reggie Middleton

Tyler Durden's picture

Investors Ditch Cash Market For Futures As Treasury Liquidity Evaporates

In what amounts to still more evidence that investors are moving into derivatives in order to avoid illiquid cash markets, UBS finds that over the "past three months, daily average futures volume stands at nearly 70% of cash Treasuries, based on the notional amounts transacted... up from about 50% in 2011."

Tyler Durden's picture

The Bond Market Is Still Broken, JPMorgan Says

Successive rounds of government bond monetization have worked to destroy the Treasury, JGB, and EU core markets while the post-crisis regulatory regime has seen dealers back away from providing liquity in the secondary market for corporate credit just as the very same monetary policy that broke government bond markets has led to an explosion of new issuance from corporate borrowers, creating the potential for a self-feeding catastrophe in the event of selloff in corporate bonds.

Tyler Durden's picture

"Graccident" Will Trigger The Demise Of The ECB And The World's Toxic Regime Of Keynesian Central Banking

The euro-19 area is now close to having a 100% debt to GDP ratio, and that’s flattered by German surpluses from an export boom that is rapidly cooling, and the fact the for a few quarters Mario’s printing press has conferred huge interest rate subsidies on their depleted fiscal accounts. The pending Graccident will puncture that illusion, tipping most of Europe into acute fiscal crisis and political upheaval of the type that has already roiled Greece and was starkly evident in Spain’s elections last weekend. The odds that the European superstate and the ECB’s Keynesian monetary regime will survive the resulting upheaval are, thankfully, somewhere between slim and none.

Tyler Durden's picture

"Kept Afloat With Nothing But Happy Thoughts"

The Fed stimulates absolutely nothing but the media’s descriptions of it and the various economists and their models that depend solely on them being successful in doing so. If recessions are emotional and irrational pessimism as the monetary textbooks believe, then QE and ZIRP are just right sort of “happy pills” to push emotions back to the “right” direction. Is it any wonder the economy is in danger of sinking toward catastrophic failure?

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