Archive for February, 2008
Thursday, February 7th, 2008
As I mentioned in the previous posting the bond auction was a sloppy mess with a long tail and little interest from end users. The reaction reflects the level of uncomfortability of the street in underwriting long duration assets. It is my opinion that the anticipated bid to unwind profitable ...
Posted in Uncategorized | Comments Off on Post Partum Blues for the Newborn Bond
Thursday, February 7th, 2008
Hank Paulson cleaned the house and had the staff set the table with fine China and shining cutlery for the quarterly 30 year bond party. In colloquial parlance " he got stood up" as the Treasury gave an auction and nobody showed up.
Just prior to the auction the WI bond ...
Posted in Uncategorized | Comments Off on 30 Year Bond Result
Thursday, February 7th, 2008
ECB President Trichet signalled that he would consider cutting interest rates in recognition of the "unusually high uncetainty" about economic growth and what the reassessment of risk means for growth. I have reported this several times over the last few days but many investors hold the view that the ECB is ...
Posted in Uncategorized | Comments Off on Touche Trichet
Thursday, February 7th, 2008
I know that it is several hours until the 100PM ET 30 year bond auction but I just had conversation with a former colleague who trades the long end of the Treasury market.He suspects that the 30 year auction will be well received today because the sector has undergone such ...
Posted in Uncategorized | Comments Off on Bond Auction Chatter
Thursday, February 7th, 2008
In response to slower economic growth and sharp declines if home prices the Bank of England cut its benchmark rate by 25 basis points. The action was widely anticipated.
Separately, some overnight flows:
Some scattered paying in 30 year swaps
Asian buyers of 5 year Treasury
Hedge fund buyers of 30 year bonds.
JJJ
Posted in Uncategorized | Comments Off on Morning Miscellany
Thursday, February 7th, 2008
Prices of Treasury coupon securities are, for the most part, posting very modest gains in European trading. The 30 year bond is unchanged as the world awaits the issuance of the lowest coupon on a 30 year Treasury bond in the modern era. Elsewhere on the curve prices are higher and the ...
Posted in Uncategorized | Comments Off on Opening Comments
Thursday, February 7th, 2008
A Marketwatch recap of factors influencing equity trading in Europe.
A relatively unscathed Deutsche Bank.
And not so sanguine at Cisco
Neurofinance?
Posted in Uncategorized | Comments Off on While We Slept
Wednesday, February 6th, 2008
Reuters with a story about the Fed monitoring the monoline insurers.
Posted in Uncategorized | Comments Off on Bernanke and the Monolines
Wednesday, February 6th, 2008
I had a general conversation with a portfolio strategist about the state of the mortgage market. It is angst filled. The carnage in the CMBS markets has raised concerns about non agency paper. There is also concern about supply which will follow an agreement to increase the loan limits for ...
Posted in Uncategorized | Comments Off on MBS and Vol
Wednesday, February 6th, 2008
Prices of Treasury coupon securities posted modest declines today as the lack of histrionics in the equity market and a sense that financial Armageddon is deferred made buyers cautious about 2 year notes sub 2.00 percent and 10 year note yields within spitting distance of 30 year lows.
Yields on most benchmark ...
Posted in Uncategorized | Comments Off on Treasury Recap February 06 ,2008