Archive for August, 2008


Friday, August 29th, 2008

Mortgage spreads are wider to  swaps by about 6 ticks this morning. I believe that the widening is a result of some profit taking following several days of gains for mortgages and there is nothing macro-thematic about the move. It is also very quiet and very thin and one large ...

HSBC on Income and Spending

Friday, August 29th, 2008

From Ian Morris of HSBC:   if (typeof YAHOO == "undefined") { var YAHOO = {}; } YAHOO.Shortcuts = YAHOO.Shortcuts || {}; YAHOO.Shortcuts.hasSensitiveText = false; YAHOO.Shortcuts.sensitivityType = []; YAHOO.Shortcuts.doUlt = false; YAHOO.Shortcuts.location = "us"; YAHOO.Shortcuts.document_id = 0; YAHOO.Shortcuts.document_type = ""; YAHOO.Shortcuts.document_title = "HSBC: US July Income/Consumption ...

IG 10

Friday, August 29th, 2008

The IG 10 is opening around 142 1/4 which is little changed from levels which prevailed yesterday.

Opening Comments August 29 2008

Friday, August 29th, 2008

Prices of Treasury coupon securities registered small mixed changes in overseas trading ahead of the shortened trading day which will lead into the Labor Day holiday weekend. The yield on the 2 year note has climbed one basis point to 2.37 percent. The yield on the 5 year note is ...

Some Links for Thursday Evening

Thursday, August 28th, 2008

The FT with a story about the devastating impact of the subprime crisis and the credit crunch on Merrill Lynch. Regarding FNMA and Freddie Mac, the Bank of China says that its appetite is sated. Lehman Brothers races to survive . Inflation rising in Japan along with a deteriorating job market.

Closing Comments August 28 2008

Thursday, August 28th, 2008

Prices of Treasury coupon securities posted mixed results today in a lackluster pre holiday session. Economic data, the month end extension and a 5 year note auction punctuated the lack of activity.The GDP revision to 3.3 percent from 1.9 percent was significantly greater than expected and was shocking given the ...

Five Year Note Auction

Thursday, August 28th, 2008

The Treasury will christen the Street with $22billion 5 year notes in about one hour. I think that this auction will go well also as did the batch of 2 year notes sold yesterday.The market trades awesome and in spite of the GDP revision to an above trend 3.3 percent ...


Thursday, August 28th, 2008

It is a very quiet open for the corporate bond market. The IG 10 is 142 which is about 1 1/2 basis points tighter than it was late yesterday. The ebullient stock market as well as news that MBIA would garner a large chunk of revenue from an insurance transaction ...

August 28 2008 Opening Comments

Thursday, August 28th, 2008

Prices of Treasury coupon securities have slipped in overnight trading in advance of an auction of $22 billion 5 year notes later today. Weakness in the bund market also elicited some sympathetic selling of Treasuries. The yield on the 2 year note has climbed 2 basis points to 2.35 percent. The ...

August 27 2008 Close

Wednesday, August 27th, 2008

Prices of Treasury coupon securities are posting modest gains today but have done so in the face of a supply onslaught from hank Paulson and his minions. The up tick in prices also comes in the face of a stronger than expected durable goods report this morning.The yield on the ...