Bond Market Update: Feb 27 2009 Morning

February 27th, 2009 8:00 am | by John Jansen |

Prices of Treasury coupon securities are posting very modest gains on overnight trading. Is it the bounce of the famous moribund feline striking the pavement after free falling from on high or is it the beginning of a relief trade following the record issuance by the Treasury? Today is the end of the month and the inclusion of the new issues on the indices will necessitate a round of buying as they days rolls on. It would be truly horrific price action today if the market is unable to mount some rally today. In the steel cage death match between salutary fundamentals and less than festive technicals, the technicals have been triumphant. I think at least for today the technical factor of month end extension should spark enough buying to give the market a healthy boost for the day.

 

The yield on the 2 year note has slipped 2 basis points to 1.07 percent. The yield on the 3 year note has also edged lower by 2 basis points and rests at 1.47 percent. The yield on the 5 year note has dropped 3 basis points to 2.04 percent. The yield on the 10 year note has fallen 3 basis points to 2.97 percent and the yield on the Long Bond has dropped 2 basis points to 3.66 percent.

 

There are several pieces of the economic puzzle available today for scrutiny.

 

There is the revision to the Q4 GDP which should take the -3.8 down to something in the vicinity of 5.5 percent.

 

University of Michigan sentiment should remain around 56 and the Chicago Purchasing Manager survey should be a quite depressed 33.

 

 

 

 

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  1. One Response to “Bond Market Update: Feb 27 2009 Morning”

  2. By Gilbert on Feb 27, 2009 | Reply

    Good morning.
    LIBOR, FEBRUARY 27, 2009
    26-Feb 27-Feb CHANGE
    O/N 0.28438 0.36250 0.07812
    1WK 0.37125 0.37750 0.00625
    2WK 0.41250 0.41875 0.00625
    1MO 0.49688 0.49625 -0.00063
    2MO 0.96375 0.96313 -0.00062
    3MO 1.26125 1.26438 0.00313
    4MO 1.51625 1.51813 0.00188
    5MO 1.64500 1.64875 0.00375
    6MO 1.79750 1.80313 0.00563
    9MO 1.95250 1.95625 0.00375
    12MO 2.11500 2.11938 0.00438

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