Archive for April, 2008

Some Opening Comments April 16 2008

Wednesday, April 16th, 2008

 Prices of Treasury coupon securities are registering modest gains in overnight trading as they partially rebound from the sharp losses registered yesterday. The yield on the benchmark 2 year note has declined 3 basis points to 1.83 percent. The yield on the 5 year note has also dropped 3 basis ...

Closing Comments April 15th 2008

Tuesday, April 15th, 2008

 Prices of Treasury coupon securities have dropped sharpy today as economic data and a generalized malaise regarding the level of interest rates weighed on sentiment. It was also a day in which selling begat more selling which then brought in more sellers. (For the record I am beginning this closing ...

Corporate Bonds

Tuesday, April 15th, 2008

Dell brought a three tranche $1.5 billion dollar deal to market yesterday. It was comprised of $400 million 30 years,$500million 10 years and $600 million 5 years. In the same reverse chronological order they were priced at T+217,T+217 and T+212for the 5 year bucket. One day later the 5 year is ...

MBS:Wider

Tuesday, April 15th, 2008

MBS are opening several ticks wider to Treasury paper. There has not been a signature trade of sorts but the cascade of selling by originators continues unabated. One dealer noted that spreads in FNMA 5 1/2s are 15 basis points or more wider than they were at the tights last ...

Swaps: Wider

Tuesday, April 15th, 2008

Swap spreads continue to widen this morning.  Spreads in the 2 year through 5 year sector have jumped by about 2 basis points while spreads in the 10 year sector are out about 1/2 basis point. Participants in that market have been struggling with the Wachovia news of yesterday and some ...

Money Markets,Again

Tuesday, April 15th, 2008

Yesterday I wrote a post about a small amount of liquidity and stability surfacing in the money markets. I specifically noted the extendible deal which HSBC successfully offered to investors,albeit at historically wide spreads. I quoted a ubiquitous but anonymous trader who noted that it would have been impossible to ...

Overnight Flow

Tuesday, April 15th, 2008

 Some overnight flows: Central banks and hedge funds were sellers of 10 year. Asian commercial banks bought 10 year. Central Banks and hedge funds sold 5 years. Japanese clients sold long maturities.

Some Opening Comments for April 15 2008

Tuesday, April 15th, 2008

 Prices of Treasury coupon securities posted modest gains from the weakened levels attained in late New York trading yesterday. The yield on the benchmark 2 year note has dropped 3 basis points to 1.73 percent.The yield on the 5 year note and the yield on the 10 year note has ...

Closing Comments April 14 2008

Monday, April 14th, 2008

 Prices of Treasury coupon securities traded in a very narrow band today and are posting mixed results. The yield on the benchmark 2 year note has declined by 1 basis point to 1.73 percent. The yield on the benchmark 5 year note is approximately unchanged at 2.58 percent. Results out ...

Agency Recap

Monday, April 14th, 2008

 The apathy which had buffeted the corporate market has also permeated the Agency market today. Spreads have leaked wider in sympathy with the leakage in swap spreads. A combination of factors contributed to the spread widening today. As I related in an earlier posting on the swap market, the dramatic tightening ...