Some Links
Monday, March 17th, 2008Text of the Federal Reserve statement. No Porsche in the driveway for these fellows. Who is next?
Archive for March, 2008
Text of the Federal Reserve statement. No Porsche in the driveway for these fellows. Who is next?
A Bit Of Irony of the Historical Variety
Sunday, March 16th, 2008Iwas working at the Open Market Desk of the Federal Reserve Bank of New York in the spring of 1980 when President Carter imposed credit controls on an economy laboring under the weight of double digit inflation. He imposed those credit constraints on March 14 1980. So it is an ...
Update on Rates
Sunday, March 16th, 2008Rates on benchmark Treasury securities continue to plummet. It is 1000PM ET and the 2year note yields 1.276 percent,the 5year note yields 2.206 percent ,the 10 year note yields 3.33 percent and the 30 year bond rests at 4.317 percent. The low yield on the 10 year in this cycle was ...
An Historic Evening
Sunday, March 16th, 2008In Tokyo trading, yields on Benchmark US debt are plunging in response to the Discount Rate cut by the Fed , the broad decline in global equity markets and the likelihood that the FOMC will slash rates 100 basis points at its meeting this Tuesday.It is 935PM ET and here ...
March 14 2008 Closing Commentary
Friday, March 14th, 2008Prices of Treasury coupon securities staged a dramatic rally today as the financial stress at Bear Stearns intensified credit concerns system wide.The yield on the 2 year note has declined by 15 basis points to 1.47 percent. The yield on the 5 year note has tumbled 11 basis points to ...
MBS
Friday, March 14th, 2008Mortgages are about 20/32 wider to swaps today and swaps in the 5 year sector are lagging Treasuries by 3 basis points. There is very little trading and the market is ruled by illiquidity. One portfolio manager with whom I converse regularly made the point that the last $100M trade ...
Thoughts on the Bear Stearns Salvage Operation
Friday, March 14th, 2008Here is an interesting thought (at least to me). JPMorgan is the white knight aiding and abetting the Fed in the salvage mission at Bear Stearns. I doubt that Jamie Dimon volunteered for that role. I would suspect that the Fed brought the parties together in a room and showed ...
Midday Update
Friday, March 14th, 2008Prices of Treasury coupon securites are signficantly higher as the JPMorgan/Federal Reserve Bank of New York bailout of Bear Stearns has motivated a flight to the safe sanctuary of Treasury securities. In my conversations with traders the level of activity is surprisingly light. Many are shellshocked as a tumultous and ...
Retail Sales
Friday, March 14th, 2008Professor Hamilton of Econbrowser offers a recessionary interpertation of yesterday's retail sales data.