Archive for March, 2008

Agency Musings

Thursday, March 27th, 2008

 Agency debt is about unchanged versus Libor today amidst light activity. Traders note that there is an expectation of some supply early next week with Freddie Mac scheduled to announce a deal. Traders are expecting $4billion 3 years. Separately , it is interesting to speculate on the near term direction of agency ...

More on Corporate Bonds

Thursday, March 27th, 2008

 Corporate bond spreads unchanged in the cash market this morning. The IG 10 is wider by 4 basis points at 137. The market is still queasy and one portfolio manager noted that the “bid side is just a suggestion”. The  main focus of the day is the Morgan Stanley 10 ...

Some Thoughts on the Early Rout

Thursday, March 27th, 2008

In very early trading today the Treasury market is a sloppy mess with rates higher by 5 basis points to 8 basis points. I have not been able to discern the seller or sellers. There is a seller at 100PM EDT, Hank Paulson, as he is pushing $18 billion 5 ...

Some Links for March 27 2008

Thursday, March 27th, 2008

 This story is a bit disturbing for a heavily indebted country such as this one which is so reliant on foreign capital. I just spotted this one this morning in the FT. It is an insightful treatise on the implications of the Bear Stearns buyouts for the philosophy which has ruled ...

Opening Comments March 27 2008

Thursday, March 27th, 2008

 Prices of Treasury coupon securities have sagged in overseas trading . The yield on the 2 year note has jumped 4 basis points to 1.71 percent while the yield on the 5 year note has moved higher by 5 basis points to 2.55 percent.In the longer maturities the yield on ...

Closing Thoughts March 26 2008

Wednesday, March 26th, 2008

 Prices of Treasury coupon securities registered bifurcated results today as the shorter maturities cruised to solid gains while the Long Bond languished in yield curve limbo.The yield on the benchmark 2 year note dropped by 10 basis points to 1.67 percent and the yield on the 5 year note fell ...

Corporate Bonds

Wednesday, March 26th, 2008

 Corporate bond spreads are mixed amidst a day of soporific trading. Industrial names are pretty much unchanged but financials are 4 basis points to 5 basis points wider. Supply was not a factor as issuance was minimal. The one meaningful new issue was an offering of $ 900 million 5 ...

Agency Market

Wednesday, March 26th, 2008

 Agency paper is about 2 basis points tighter today as there has been robust buying from foreign based money managers as well as foreign central banks.There was active outright buying and some participants reported sellers of supranational paper moving into the agency market. There has been a genuine change of heart ...

Two Year Note Auction Result

Wednesday, March 26th, 2008

So much for the theory that bidding would be less than robust for the $28 billion of 2 year notes at the just completed auction. The auction average was 1.761 percent which is about 2.5 basis points through where they were trading in the broker market prior to the auction. Indirect bidders ...

Wednesday, March 26th, 2008

 Someone just forwarded a piece to me from a dealer which notes that March 2year note auctions the last several years have been sloppy affairs with 3 out of the last 4 having a bidding tail. The quarter end and Japanese fiscal year end combo makes dealers reluctant bidders as ...