Archive for June, 2008
Friday, June 27th, 2008
Prices of Treasury coupon securities moved higher today in a languid and lackadaisical trading session. The yield on the benchmark 2 year note has declined by a basis point to 2.64 percent. The yield on the 5 year note has dropped 4 basis points to 3.37 percent. The yield on ...
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Friday, June 27th, 2008
TIP bonds are trading at the wide end of their range for 2006. The breakeven on 10 year TIPS is currently right about 256 basis points . The spread reached that level earlier this year on March 7 and is just about there today. The spread has not traded appreciably ...
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Friday, June 27th, 2008
At 234PM Eastern Daylight time agency spreads are unchanged. Stocks have been down hard for a chunk of the day and swap spreads are wider. Against that background, the performance of the agency sector is quite admirable.There was some central bank buying of bullets in the 2year through 5 year ...
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Friday, June 27th, 2008
Regarding financial stress at primary dealers, that does not seem to be a problem at the moment. I just perused the Fed's H.4.1 Factors Affecting Reserve Flows Report which is available every Thursday afternoon around 400PM New York time.The average daily balance of borrowings by primary dealers at the Fed ...
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Friday, June 27th, 2008
Corporate bond market has a heavy, sloppy tone about it but there is very little trading of secondary securities. One dealer noted that "liquidity is drying up and decent bids are at a premium".As measured by the IG 10 spreads are wider by about 4 basis points.
The only interesting story ...
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Friday, June 27th, 2008
This story chronicles the day's litany of financial woes. Maybe the economy has to go through the pain and anguish of an alcoholic who hits rock bottom before the recovery process can begin. It just struck me that so many(myself included) had thought that the worst of the financial stress ...
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Friday, June 27th, 2008
Some overnight Treasury flow:Real money from Japan buying in the 5ear/7year sector.
Two way speculative flow in 10 year.
Central Bank Buying of 2 year.
Commercial Bank buying 5years.
Japanese bank buying 10s.
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Friday, June 27th, 2008
Prices of Treasury coupon securities are registering small mixed changes in overnight trading. The yield on the 2 year note has climbed by 3 basis points to 2.69 percent . The yields on each of the other benchmark issues have declined by a little less than 1 basis point . ...
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Friday, June 27th, 2008
Marketwatch reports tha Toyota is contemplating across the board prices increases on some of its models to offset higher materials costs. It would be the first such price hike since 1974.
As part of its gargantuan write downs AIG took a $5 billion hit in sec lending business. It is truly ...
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Friday, June 27th, 2008
Testing testing testing
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