Bond and Curve

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  • Topic: Bond, Fixed income analysis, Bond market
  • Pages : 10 (3659 words )
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  • Published : February 1, 2013
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Hello. Welcome to the fixed income session of the Bloomberg Essential Online Training Program. My name is Kyle Ashworth, and today we’ll be discussing the analytics and data monitors that we have available within fixed income on the Bloomberg terminal.

The first tool that we want to use to look at news, news for fixed income. So what we’ll do is we’ll navigate down to the bottom of the menu, and we’ll click on 14 NBOND for bond news. Clicking that, it’ll load a very familiar page for you. This is the news categories. And you’ll notice on the top left in the toolbar it says bonds. So now we have our top bond news.

This isn’t just our top bond news, but also we can choose popular news, and we can also see all news for bonds. You can customize the type of fixed income news by either clicking on customize and choosing from there, or if you click new search you can also type in additional fixed income topics like credit markets, municipal bonds, additional categories that I already have in my particular monitor here.

Now for the next screen that we would like to look at is economic calendar. This is another screen that you should be familiar with already from the other videos, but let’s type in ECO for economic calendar. And from here, specifically for fixed income, we can focus on releases within the top left menu. If we click the economic releases and go down to government auctions, this is going to bring up the auctions for the United States in particular. You can change the country. If you want to put in Germany, you can type in Germany.

And notice if we go back to the United States, all the current releases are in white and all the future releases are going to be in amber, just like before. If you want to see the results of those, you can again click into that release and you can see that data in there as well the news stories listed below.

Now for an overview of the global fixed income markets, we can type WB for world bond markets, and then hit the go key. Notice that we have our countries on the left hand side, and across from those we have columns for information like price, the change in price, yield, change in yield, a charge of the yield.

And then on the right side, we have a relative value performance of how do we look – how is the yield now versus the average over a period? In this case, we’re comparing the yield of now in blue versus the average, which is in three months. You can change that easily by clicking one week, for example, and now you can see if the yield is wider or tighter than the average that you specified on the top right.

In addition, you can change the maturity of the bonds. If you want to look at five years, change it to five years and that’ll update – that’ll update accordingly. It’ll show you the individual securities here. If you want to see any additional information from those, you can actually click on the name of the country, and that’ll take you into a deeper level menu where now you can see the different tenors of that curve. You can see the curve spreads, butterflies, additional information there that you can explore.

Let’s hit the menu key. We also have two additional tabs. If you click on spreads, that’ll give you spreads relative to the country you have selected. If you want to see spreads relative to Italy, we can choose Italy from the list. And now it’s giving you the spread of Italy versus the United States in blue.

Additionally, you have the spread chart and the historical comparison available just like in the bonds tab. Lastly, we have the curves tab. And what that’s doing is it’s letting you compare all these countries with a side by side of each point on that curve so you can get a quick and real-time update of those curves and how they’re moving.

Now WB is a monitor with real-time information that rates (ph) currently trading in the market. For an overview of bond yield forecasts, we can look at BYFC...
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