Archive for March, 2008

Mid Morning Miscellany

Tuesday, March 25th, 2008

 Prices of Treasury coupon securities are rebounding nicely following the debacle which was yesterday. Yields are lower by 4 basis points to nearly 7 basis points with the biggest declines on the front end of the yield curve. In London trading the 2year /10year spread was resting at 172 basis ...

Some Opening Comments Nine Months Before Christmas

Tuesday, March 25th, 2008

 Prices of Treasury coupon securities have rebounded in overnight trading as the sharply higher yield levels enticed some buyers into the market.The yield on the benchmark 2 year note has declined 2 basis points to 1.78 percent while the yield on the benchmark 5 year note has slipped by 3 ...

Some Links Which I Found Interesting

Monday, March 24th, 2008

UPS reports a widespread slowdown in volumes. And the blog EconWeekly does a great job of making some sense out of the alphabetic and acronymic policy intiatives of the Bernanke Fed. It aint your father's monetary policy mix. WSJ reports that record foreclosures are taking an additional toll on the housing market.

Treasury Close March 24 2008

Monday, March 24th, 2008

 Prices of Treasury coupon securities plummeted today as more of the flight to quality trade unwound and the deleveraging process continued into quarter end.The yield on the 2 year note has climbed 23 basis points to 1.83 percent and the yield on the 5 year note has jumped 26 basis ...

Agency Close

Monday, March 24th, 2008

 Agency debt is tighter by 3 basis points to 5 basis points today. One trader with whom I converse regularly noted that volume in this sector is light,too. He suggested that the back up in rates is a positive. He had been observing selling of Agency paper as the absolute ...

Corporate Bond Close

Monday, March 24th, 2008

 Corporate bond trading continues very light though there has been some pickup in issuance activity.Cash securities are closing at the tightest levels of the day as the raging equity market bolsters sentiment. One trader with whom I spoke noted that it feels like a holiday. Issuance picked up with a spate ...

MBS

Monday, March 24th, 2008

 MBS paper currently about 4 basis points wider to swaps after being as much as 11 basis points wider in the early going. Originators have been selling but that selling has been met with buying from servicers and international accounts.

Corporate Bonds

Monday, March 24th, 2008

 Corporate bond spreads are unchanged to 10 basis points to 15 basis points tighter. The level of activity here is exceedingly light as many participants are still on holiday. The new issue calendar is comatose at the moment. The best performers in the cash markets are the financial names. JPM ...

Bills and Repo

Monday, March 24th, 2008

 Treasury bill rates have jumped significantly this morning as some of the fear leaks out of that market. The yield on the three month Treasury bill has jumped 40 basis points to 90 basis points.On the other hand the spread between GC and repo remains wide at about 135 basis ...

Morning Update March 24 2008

Monday, March 24th, 2008

 Prices of Treasury coupon securites are dropping rather dramatically in response to the JPMorgan/ Bear Stearns /Federal Reserve story that JPM has quintupled its bid for Bear Stearns stock. The guarantee from the Fed of Bear assets has ironically been shifted into a structured product of sorts. JPM will now ...