HALISTER1: U.S. ECO PREVIEW: Leading Indicators Due in 5 Minutes

U.S. ECO PREVIEW: Leading Indicators Due in 5 Minutes

(Bloomberg) -- Index of leading economic indicators seen rising 0.1% in Oct. after increasing 0.2% in Sept. (forecast range -0.1% to 0.2%); LEI measures economic outlook for next 3 to 6 mos.
  • Investors should focus on coincidental-lagging component, which has exhibited some of the lowest readings since 1970s, a sign of weakness: Bloomberg Intelligence
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Storm King Funding - Transaction 65 Summary

Storm King Funding - Transaction 65 Summary

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

Tickers
1529Z CN (Storm King Funding)

People
Jamie Feehely (DBRS Ltd)
Justin Tsang (DBRS Inc)
King Lam (DBRS Ltd)
Tim O'Neil (DBRS Ltd)

Topics
Fixed Income Research
Reports
Credit Analysis Research
Credit Research
Investment Research

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UUID: 7947283

HALISTER1: Brazil Central Bank’s Support of BRL Watched Warily by Analysts

Brazil Central Bank’s Support of BRL Watched Warily by Analysts

(Bloomberg) -- Recognized as the main reason for BRL out-sized strength compared to peers, BCB intervention is gaining some critics among market professionals.
  • BRL, second most volatile currency only after ZAR, reversed early drop after BCB sold all 10.000 FX swaps contracts in a auction
    • BCB also will auction 20,000 FX swap contracts for rollovers, 11:30am-11:40am local time
  • BCB and Brazil Treasury, which has been repurchasing notes, are doing a “great job” amid a scenario of strong turbulence, Pablo Spyer, director at Mirae Asset Wealth Management, says in a phone interview
    • High volatility to continue at least until the next FOMC meeting, specially for EM markets
    • Risk aversion seen after Trump election was boosted by yesterday’s Yellen speech
  • Swaps auctions are helping BRL, but should BCB continue intervening, the market may start questioning the bank’s discourse in favor of free FX floating regime, Paulo Nepomuceno, FI strategist at Coinvalores Ccvm, says
    • Treasury likely to stop buy back auctions of fixed rates notes next week
  • NOTE: Icap’s Abucater yesterday said FX calming down could open door for BCB to mute action in the market
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Pablo Spyer (Mirae Asset Global Investments)
Paulo Nepomuceno (Coinvalores CCVM Ltda)

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UUID: 7947283

HALISTER1: BTP-Bund May Form ‘Dark Cloud Cover’ Pattern at Brexit-Day Wide

BTP-Bund May Form ‘Dark Cloud Cover’ Pattern at Brexit-Day Wide

(Bloomberg) -- Italy-Germany 10-year yield spread has narrowed after initially gapping wider to 191bps, right against Brexit-day wide of 192bps; may form a candlestick pattern that augurs for further compression, Bloomberg technical analyst Sejul Gokal writes.
  • See chart; spread now -2bps at 180bps
  • May see mean-reversion narrowing to 21-DMA at 156bps
  • 9-day RSI diverging negatively, supporting near-term spread compression phase
  • In light of the upcoming Italy referendum, analysts say BTP selloff may be contained as the nation’s debt would be supported if the ECB extends its QE program at its meeting scheduled 4 days after the vote
  • NOTE: Nov. 14, BTP-Bund Spread Eyes Brexit Day Wide at 192bps (from 176bps at time of writing)
  • For Dark Cloud Cover definition, click here
  • NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

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UUID: 7947283