Archive for May, 2008
Friday, May 9th, 2008
Prices of Treasury coupon securities posted marginal gains today with a surprisingly subdued reaction to the cratering stock market and the announcement from AIG of significant credit related losses. The market has had a pretty decent run off the lows and with the refunding auctions in hand it might take ...
Posted in Uncategorized | Comments Off on Some Closing Comments May 09 2008 (Truncated)
Friday, May 9th, 2008
The corporate bond market carried a heavy tone today and a market participant with whom I communicate regularly on this sector described the tone as the heaviest in about a month.There was very little trading in the cash market and as the market opened in New York spreads on bank ...
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Friday, May 9th, 2008
Central banks had a reasonably large bid in the 10 year note auction early this week as evidenced by the 40 percent taken by the indirect bidding category . This was slightly greater than the historical average of 37.4 percent . One market participant with whom I converse suggests that ...
Posted in Uncategorized | Comments Off on Central Bank Flows
Friday, May 9th, 2008
There was chunky buying of MBS overnight in overseas trading .There was especially strong interest in GNMA paper on an outright as well as against conventionals. This morning hot money and originator selling has moved spreads wider by about a tick versus Treasuries and swaps.
Posted in Uncategorized | Comments Off on MBS
Friday, May 9th, 2008
Some overnight flow in Treasury market:
Central bank buying in 2 year and selling in off the run 10 years.
Real money selling long end.
Bank sells off the run 5 years.
Hedge fund buyer 5 years.
Bank seller intermediate Treasury.
Posted in Uncategorized | Comments Off on Overnight Treasury Flow
Friday, May 9th, 2008
Prices of Treasury coupon securities have posted modest gains in overnight trading amidst a news cycle which has generated some angst amongst the equity crowd. AIG initiated the queasy feeling when it announced a gargantuan loss for Q1 of nearly $8billion and credit losses of $15 billion. Oil surged to ...
Posted in Uncategorized | Comments Off on OPening Comments for May 09 2008
Friday, May 9th, 2008
Neil Sedaka said it best, "Breaking Up Is Hard To Do"!
Oil trading as if it were a dot com stock in 1999.
AIG takes huge hit in credit derivative portfolio and suffers the ignominy of ratings downgrade.
EconWeekly with an interesting ranking of economists.
And an interesting post mortem on the demise of ...
Posted in Uncategorized | Comments Off on Some Links for May 09 2008
Thursday, May 8th, 2008
Prices of Treasury coupon securities have surged today as a conjuntion of diverse factors propelled prices higher. The Treasury successfully auctioned the final leg of the refunding auction with the sale of $6billion Long Bonds. The auction stopped about 2 basis points better than the pre auction chatter and gave ...
Posted in Uncategorized | Comments Off on Closing Commentary May 08 2008
Thursday, May 8th, 2008
Agency spreads are tighter by 3 basis points to 4 basis points on the day. I heard reports of a very large buyer of this debt and the price action in the brokers markets is supportive of that view. I have not been able to identify the buyer. Traders in ...
Posted in Uncategorized | Comments Off on Agency Debt
Thursday, May 8th, 2008
Corporate bond spreads are unchanged to a couple of basis points wider today.The highlight of the day was a multi tranche offering from ATT which had the temerity to challenge the Treasury on the day of the Long Bond auction. ATT has announced $1.25 billion 30 year bonds, $1billion 10 ...
Posted in Uncategorized | Comments Off on CCorporate Bonds