Archive for January, 2008

Overnight Fixed Income Trading

Wednesday, January 23rd, 2008

Prices of treasury coupon securities are surging in overseas trading as equity markets take a tumble once again. Equities were steady early but have posted chunky losses following a story about ECB President Trichet. The story should carry the title,"Central Banker Seeks Job Piloting Titanic". In the story Trichet avers ...

Morning Potpourri

Wednesday, January 23rd, 2008

http://www.nytimes.com/2008/01/23/opinion/23stiglitz.html?ref=business http://www.ft.com/cms/s/0/0deb7086-c93b-11dc-9807-000077b07658.html http://www.ft.com/cms/s/0/d4ba9b84-c98a-11dc-b5dc-000077b07658.html

Mendoza Line and Other End of Day Musings

Tuesday, January 22nd, 2008

Prices of Treasury coupon securities surged in a memorable day of trading capped by a global equity meltdown (and subsequent recovery)  and a surprising 75 basis point rate cut by the Federal Reserve.  Movements in the equity market entranced Treasury traders and for the forseeable future the fortunes of bond ...

Middle of the Day Tuesday January 22 2008

Tuesday, January 22nd, 2008

It has been an exciting day as the plunge in global equity markets elicited the largest rate cut by the Federal Reserve since the Orwellian year,1984. The reasons for the Fed action perplexes me. In my opinion, they seem to have elevated the equity market to a higher level in the ...

Subprime Matters and the Fed Move

Tuesday, January 22nd, 2008

The quirky Bernanke Fed has reduced the target Federal Funds rate by 75 basis points and  via their explanation signal that they tremble at the near term economic outlook. The crisis began in the subprime sector and I would offer some thoughts on how this will effect the owner of ...

Activity

Tuesday, January 22nd, 2008

Overnight activity was light given the turmoil in the markets. One dealer with whom I  conversed had observed active profit taking in the front end during Asian time. The markets need the Fed and the fundamentals to validate the price levels. Otherwise a 2.00 percent 2year is not a viable investment. JJJ

Tuesday Morning

Tuesday, January 22nd, 2008

Prices of Treasury coupon securities continue to take their cue from movements in the equity markets. BenchmarkTreasuries had retreated from their best levels but are pushing higher in price once again as futures show new weakness in stock prices. The widely followed 10year has once again pierced the 3.50 percent level ...

Update (430AM ET)

Tuesday, January 22nd, 2008

Benchmark Treasury issues have retreated somewhat from the best levels of the overnight session. The 2year note had pierced the 2.00 percent level and traded as richly as 1.985 and the 10year traded to a low yield of 3.42. At this moment they yield approximately 2.10 percent and 3.50 percent, ...

Forewarned

Tuesday, January 22nd, 2008

This page might provide pertinent information for today's trading.

Treasury Market Opening in Tokyo Time

Monday, January 21st, 2008

Prices of Treasury coupon securities are surging as they open for trading for the first time following the global plunge in equity prices while US markets were shuttered in observance of the Martin Luther King holiday. It is about 730PM in New York as I write and the 2 year ...