Archive for January, 2008
Monday, January 28th, 2008
Stocks dropped sharply following the release of the Home Sales data. They have since recovered and the S and P is better by almost 5 points. This is the first time in recent memory that the stock market has chosen to ignore bad news. It will be interesting to see if ...
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Monday, January 28th, 2008
New homes dales data for December were just released and it is not a pretty picture. Sales dropped to 604K from a revised 634K. The median and mean sales prices also received healthy batterings. The median sales price dropped 10.4 percent from a year ago to $219.2K from $245.9 K in ...
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Monday, January 28th, 2008
Former Goldman Sachs Chairman and current Treasury Secretary Hank Paulson will visit the market to raise $24 billion via the sale of 2 year notes today. This is the largest offering of 2year notes since April 2005. My conversations with market particioants leaves me with the thought that the street ...
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Monday, January 28th, 2008
Prices of Treasury coupon securites have jumped in overnight trading as pervasive global equity market weakness stimulates demand for the safety of Treasury paper. The Nikkei and the Hang Seng each fell by about 4 percent and in China shares fell by more than 7 percent. European equities are posting losses ...
Posted in Uncategorized | Comments Off on Opening Comments Monday January 28,2008
Monday, January 28th, 2008
http://www.ft.com/cms/s/0/58bab83a-c984-11dc-b5dc-000077b07658.html
http://www.ft.com/cms/s/0/248ee024-cd42-11dc-9b2b-000077b07658.html
http://www.ft.com/cms/s/106230b0-cd29-11dc-9b2b-000077b07658.html
Posted in Uncategorized | Comments Off on Monday Morning News
Sunday, January 27th, 2008
Last week brought the lowest yield ever recorded for a 30 year bond (4.10 percent) in my three decades of observing daily interest rate movements. Similiarly,the yield on the 2 year Treasury slipped below the 2.00 percent level. The last time that issue traded that low in yield was in the ...
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Friday, January 25th, 2008
Prices of Treasury coupon securites surged today in response to the crack in the equity markets. Fear was ascendant as the market was rife with rumors of hedge funds in trouble and write downs at foreign banks. Benchmark issues rallied in unison and most observed their yields falling by 14 ...
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Friday, January 25th, 2008
High grade corporate bonds moved in concert with the gyrations of the stock market. One trader with whom I spoke remarked that the market remains very thin and very illiquid in secondary space. He suggested using the IG9 as a proxy for corporate spreads. In the panic which was Tuesday ...
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Friday, January 25th, 2008
The recurring theme in agencies is the volume of paper being called by the agencies as rates stay low. The exercise of the option by the issuer leaves many clients with a gaping hole in their portfolios and a need for replacement paper. One trader with whom I conversed said ...
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Friday, January 25th, 2008
It has been an active day in the mortgage market. There has been a cross section of accounts buying and they have taken FNMA 5s about 4 basis points tighter to the swap curve on the day. Mortgage servicers have been active establishing curve flattening positions via the swap market ...
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