Archive for March, 2008

Overnight Flow

Thursday, March 13th, 2008

 Some overnight flows: Central bank buyer of 10 year. Central bank seller of 5 year. US end user sells 30 year. Hedge fund buys 10 year. Asian buyers 10 year. Option related buyers of 5 year. End user selling 5 year and 10 year.

Some Opening Comments March 13,2008

Thursday, March 13th, 2008

 Prices of Treasury coupon securites have catapulted higher in overnight trading ,propelled by a resurgence of the same credit fears which plagued the markets before the Federal Reserve announced earlier this week dramatic action to alleviate some of the market's painful problems. The proximate cause of this overnight dash to ...

Insomniac Alert

Thursday, March 13th, 2008

For those who cant sleep because the credit crunch doesnt either.

Late MBS Commentary

Wednesday, March 12th, 2008

 Some late in the day thoughts on MBS: FNMA 5 1/2s in late trading had retreated from the best levels of the day by quite a bit. At its best it was 20 tighter to swaps but finshed 10 tighter. At the highest prices of the day and the narrowest spread a wave of ...

Treasury Market Close

Wednesday, March 12th, 2008

 Prices of Treasury coupon securities have moved sharpy higher today reversing much of the carnage from yesterday. The yield on the 2 year note has declined by 13 basis points to 1.60 percent and the yield on the benchmark 5 year note has tumbled 17 basis points to 2.45 percent. ...

Agency Market: Agony Sans Ecstasy

Wednesday, March 12th, 2008

 Agency spreads are finishing the day a couple of basis points wider to swap spreads and Treasury debt. I had not followed this recently but there has been a significant repricing of Agency debt relative to swaps over the past week. For reference purposes it is worth noting that before ...

Corporate Climate

Wednesday, March 12th, 2008

 Corporate bonds opened the day with a firm tone as a residue of optimism had clung to the market following the Fed's announcement yesterday.Stocks were posting robust gains and other spread sectors were performing well. The market ,however, is finishing about unchanged on the day. Supply is the culprit and ...

Midday Musings

Wednesday, March 12th, 2008

 The Treasury market is very well bid today as rates drop across the curve between 7basis points and 10 basis points.I think the MBS market has generated some of the rally in Treasuries as robust demand for the MBS product leads traders to lift Treasury hedges. Others report speculation (the ...

Update on MBS

Wednesday, March 12th, 2008

 Mortgages widened to Treasuries in the early going as hedge funds sold FNMA 5 1/2s versus Treasuries. The widening attracted some buy interest and that has overwhelmed the sellers as spreads are now tighter on the day by about 13 ticks to Treasuries. Hot money as well as end users ...

Some Opening Comments March 12 2008

Wednesday, March 12th, 2008

 Prices of Treasury coupon securities, after falling sharpy yesterday in response to the laying on of hands on risky assets by the high priests at the Fed, are virtually unchanged in overnight trading. The yield on the benchmark 2 year note sits at about 1.75 percent and the yield on ...