Archive for May, 2008
Tuesday, May 13th, 2008
Federal Reserve Bank of Cleveland President Pianalto on the economy and inflation.
There is no opening comments piece today as I was busy transporting my other daughter to the airport. From my neck of the woods on Long Island, it is not fun riding to Laguardia Airport at 630AM. Anyway, I ...
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Tuesday, May 13th, 2008
European stocks decline on a robust report on inflation in the UK.
Sco Gen has a better than expected quarter but does not escape the clutches of the credit crunch. Its credit related writedown for the period was nearly $2billion.
Dismal results at Toll Brothers suggest that residential housing market will remain ...
Posted in Uncategorized | Comments Off on Some links for May 13 2008
Monday, May 12th, 2008
Prices of Treasury coupon securities registered bifurcated results today as bonds with maturities of 5 year and less posted modest losses while bonds with maturities greater than 10 years posted marginal gains. The yield on the benchmark 2 year note gained 3 basis points to finish the day at 2.28 ...
Posted in Uncategorized | Comments Off on Closing Comments May 12 2008
Monday, May 12th, 2008
Agency bond spreads have leaked wider in featureless trading today. Traders report that customer activity has been minimal. Spreads have leaked wider by about ½ basis point. FNMA will announce a benchmark offering tomorrow and many traders anticipate a 5 year issue of approximately $3 billion.
Corporate bond spreads are virtually ...
Posted in Uncategorized | Comments Off on Agencies and Corporates
Monday, May 12th, 2008
Treasury traders report very light flows today and note that the market is literally pushed in the direction of the last large trade. Early on there was chunky buying of benchmark 2 year, 5 year and 10 year paper by central banks. That flow was offset by the Open Market ...
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Monday, May 12th, 2008
FED SELLING TRSY COUPONS - 2.5YR SECTOR
1bln of each
3 7/8 5/15/10
4 1/2 5/15/10
4 1/8 8/15/10
5 3/4 8/15/10
4 1/2 11/15/10
Posted in Uncategorized | Comments Off on Sterilization a la the Federal Reserve
Monday, May 12th, 2008
Mortgage debt is 1 basis point to 2 basis points wider on the day. At these levels some end user as well as some foreign buying has emerged to support the basis. Volatility is a tad lower and the curve is a tad flatter which should serve to benefit MBS.
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Monday, May 12th, 2008
Some analysts believe that corporate bond spreads should be under some near term pressure to widen. They note that the post Bear Stearns rescue rally is getting long in the tooth and that has prompted some profit taking from some who caught that wave. Supply has been heavy and is ...
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Monday, May 12th, 2008
Some overnight Treasury market flows:
Asian real money buyers of 5 year and 10 year.
Bank seller of 10 year.
Japanese bank buyer of 5 year.
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Monday, May 12th, 2008
Prices of Treasury coupon securities have registered mixed results in quiet overseas trading with most issues registering modest losses. The yield on the benchmark 2 year note is unchanged at 2.24 percent. The yield on the 5 year note has increased by 1 basis point and rests at 2.98 percent. ...
Posted in Uncategorized | Comments Off on Some Opening Comments May 12 2008