Any treasury yield strategy pertaining dollar eyes modification due to unlikely fed’s rate stance
Sep 11, 2015 13:25 pm UTC| Insights & Views
We had earlier advocated in the month of August that we did not expect large moves in US yields in the near term and recommended selling 3m*5y straddles, which appeared rich. While selling 3m*5y is still attractive,...
Dollar to perceive volatility shrink due to no significant economic events besides FOMC meeting
Sep 11, 2015 12:44 pm UTC| Insights & Views
A dovish surprise at next weeks FOMC may relieve some of the pressure from the first two factors; if dollar strength dissipates and risky assets bounce back (it would require a substantial rally for our measure of needs to...

Russia to face prolonged recession, oil price volatility a key risk
Sep 11, 2015 11:27 am UTC| Insights & Views
Russia is in recession, its longest since 1997, but a collapse is definitely not on the cards. The contraction in Russias GDP growth accelerated to -4.6% y/y in Q2, from -2.2% in Q1. Monthly data published so far in Q3...
FxWirePro: U.S. treasury yields and swaps recommendation
Sep 11, 2015 11:23 am UTC| Insights & Views
US yields sold off modestly over the week, with 10y yields rising to 2.23%, as risk assets stabilized amid little economic data. The Fed will also be updating its fed funds rate forecasts and adding one for YE 18, which at...

Strengthening dollar to prop up growth forecasts
Sep 11, 2015 11:21 am UTC| Insights & Views
We reckon the strengthening of the USD is likely to weigh on the Feds forecasts the most. While the fall in energy prices may be expected to provide a boost, the sell-off in the equity markets should offset that. Vice...

SNB sells Franc to weaken since floor break against Euro
Sep 11, 2015 11:15 am UTC| Insights & Views
Euro has strengthened beyond 1.10 against Franc, strongest point since EUR/CHF floor was removed by Swiss National Bank. On January 15th, Swiss National Bank removed EUR/CHF floor in a surprise to the market, leading to...
Demand for longer end Treasury healthy ahead of FOMC
Sep 11, 2015 10:43 am UTC| Insights & Views
As US Federal Reserve closes in on rate hike, which could come as early as next week, demand for longer end treasury is showing strength going into the rate decision. Last night US auctioned $13 billion longer dated (30...