Archive for March, 2008

Economic Update

Thursday, March 20th, 2008

 Economic data released this morning are indecisive. The initial jobless claims data showed a jump in new claims to 378k in the week ending March 15 and the four week moving average rose to 365.2K. The Labor Department noted that a strike has effected production at General Motors and some ...

Professor Hamilton on the Fed

Thursday, March 20th, 2008

http://www.econbrowser.com/archives/2008/03/another_75.html

Opening Comments March 20 2008

Thursday, March 20th, 2008

Prices of Treasury coupon securities have tumbled in overseas trading and the curve flattening trend evident early yesterday (interrupted somewhat by the equity slide) has resumed with a vengeance. The yield on the 2 year note has jumped 10 basis points to 1.56 percent and the yield on the 5 ...

March 19 2008 Closing Commentary

Wednesday, March 19th, 2008

 Prices of Treasury coupon securities took a wild raucous ride today in another stomach churning volatile trading session.Early in the day the market experienced severe curve flattening which I discussed at length in an earlier posting. The curve is still flatter on the day but much less so than when ...

Corporate Bonds

Wednesday, March 19th, 2008

 Corporate bond spreads opened with a robust bid as the era of good feelings generated by the demise of Bear Stearns and the factors associated with the Federal Reserve response sparked some buying. At one point this morning the IG 9 Index was 20 basis points tighter . That index is ...

MBS Today

Wednesday, March 19th, 2008

 Mortgages opened tighter in response to the OFHEO announcement which lifted some of the more stringent capital constraints which had shackled the GSEs. In early trading there was robust buying from money mangers and servicers. That spate of buying drove spreads as much as 20 ticks tighter but profit taking ...

European Flattening

Wednesday, March 19th, 2008

 My friends at Market News International have circulated a story that as a result of a tough financial environment Dutch pension funds need some duration and that is one of the reasons for some curve flattening in Europe. The pension funds have grabbed duration by receiving in 30 year swaps. The ...

Curve Flattens

Wednesday, March 19th, 2008

 There is a rather substantial unwind of curve steepening trades taking place today.It is happening in the Treasury market as well as in the swap market. This trade is very well owned and if holders of the position decide to simultaneously head for the exits ,life could become rather painful ...

Opening Comments March 19 2008

Wednesday, March 19th, 2008

 Prices of Treasury coupon securities have rebounded and are reversing a portion of the sharp losses experienced throughout the day yesterday and which losses accelerated following the release of the FOMC statement which contained an epiphany of sorts regarding inflation as well as dissents from two Committee members who thought ...

Circadian Rhythm

Wednesday, March 19th, 2008

I just woke up and guess my daily clock had not kicked in yet when I posted the links in the previous post. But I  just realized that it is Wednesday March 19,2008.