Archive for April, 2008

News Flash

Thursday, April 17th, 2008

The benchmark 2 year Treasury note is trading at 2.00 percent. The issue has not seen that level since late February. Separately,one month Libor did set higher this morning at 2.80 percent, up from 2.73219 yesterday.That is the highest Libor level since March 13 . That date is significant if you ...

Closing Comments for April 16 2008

Wednesday, April 16th, 2008

 Prices of Treasury coupon securities plunged today as a rip roaring (rip either because it is rest in peace time or if rip van winkle awakened from a multi year sleep he would think it is still 1999) equity market rally which drained strength and cash from the bond market.Other ...

Corporate Bond Recap

Wednesday, April 16th, 2008

 Corporate bond spreads are about 5 basis points tighter today and the mood is gleeful. Participants with whom I spoke noted that the stock market rally has bolstered sentiment and the same can be said for the highest yields in the Treasury market in about 6 weeks. Those higher yields ...

MBS

Wednesday, April 16th, 2008

 It has been an active trading day in the MBS market. The last report I have is about 30 minutes old but at that time mortgages were holding near the wides of the day about 4 ticks wider to the 10 year Treasury. There has been two way flow in ...

Technical Breakdown

Wednesday, April 16th, 2008

The 10 year Treasury is on the verge of a technical breakdown. Since March 01 it has been in a range between 3.67 and 3.31. More recently the issue has traded between 3.45 percent and 3.60 percent. I have never been a proponent of charting but it does provide a ...

The Truth Shall Set You Free!

Wednesday, April 16th, 2008

 I have been a frequenter poster on the money markets lately. I have related the thoughts of a money market trader at a large shop who has been modestly constructive on his market. The story in the Wall Street Journal this morning which suggetst that banks have been understating the ...

British Bankers Association on Libor

Wednesday, April 16th, 2008

http://www.bloomberg.com/apps/news?pid=20601087&sid=agkAIEY3Zons&refer=home

Swap Spreads

Wednesday, April 16th, 2008

 Swap spreads continue to leak wider . There has been some chunky paying by an eclectic group of clients already this morning. Spreads are about 1 basis point wider across the curve. The Wall Street Journal has as its lead article this morning a discussion which suggests that misreporting has ...

HSBC on the Housing Starts Data

Wednesday, April 16th, 2008

HSBC: US MAR HOUSING STARTS - STILL COLLAPSING * The collapse continues - both housing starts and building   permits lower than expected and both 59% down from their   peak more than two years ago. * In previous crashes, the decline from peak to trough has been   40-60%, so we are on the ...

Some Links for Tuesday April 16 2008

Wednesday, April 16th, 2008

Here is the press release from JPM which discusses Q1 results. Earnings beat expectations but a quick read through this lengthy piece should temper enthusiasm. The firm had a very difficult period as credit market sapped earnings. The increase in credit losses reached down to the level of auto loans ...