Archive for May, 2008
Friday, May 2nd, 2008
Mortgages are “en fuego” this morning with FNMA 5 1/2s about 8 ticks better than 10 year Treasury.Volume has been light but domestic money managers are better buyers and foreign clients are uncharacteristically sidelined.
Mortgages are deriving benefit from a lack of supply as well as declining vol.
Posted in Uncategorized | Comments Off on MBS
Friday, May 2nd, 2008
The Federal Reserve addressed lingering liquidity isssues in the money markets prior to the release of the labor data this morning. The Federal Reserve has increased swap lines with the European Central Banks and has increased substantially the size of the TAF program. It has also expanded the range of ...
Posted in Uncategorized | Comments Off on Money Markets and the Federal Reserve
Friday, May 2nd, 2008
Prices of Treasury coupon securities have posted mixed results in overseas trading . The 2 year note rebounded from the debacle which it experienced yesterday as its yield slipped 3 basis points to 2.34 percent.(Late yesterday after I published my closing piece I heard that the pressure in the front ...
Posted in Uncategorized | Comments Off on Opening Comments May 02 2008
Thursday, May 1st, 2008
Prices of Treasury coupon securities slumped sharply today as a powerful equity market rally enervated the early strength which had developed in fixed income.The equity market rallied in response to the sharp collapse in commodity prices which in turn resulted from the rally of greenback in the foreign exchange. Financial ...
Posted in Uncategorized | Comments Off on Closing Comments May 01 2008
Thursday, May 1st, 2008
Benchmark Treasury securities are posting mixed results today in quiet trading. Most of Europe is closed and that has reduced volumes. Others are on the sidelines awaiting the monthly labor data. Some see the FOMC on hold for several months until clearer evidence of economic distress presents itself and for ...
Posted in Uncategorized | Comments Off on Curve Update
Thursday, May 1st, 2008
Corporate bond spreads are still marching tighter amidst a complete change in sentiment over the last month. Spreads are 2 basis points to 3 basis points tighter in cash as well as in the index. There are many end user buyers and few sellers. I spoke with a veteran corporate ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Thursday, May 1st, 2008
Mortgage securities continue to perform admirably and demand remains robust. This morning banks and servicers have been the big buyers as the lower yields generate some convexity based buying. Dealers report that mortgages are about 8 ticks better versus Treasuries and about 7 ticks better than swaps.
Posted in Uncategorized | Comments Off on MBS
Thursday, May 1st, 2008
Prices of Treasury coupon securities have uniformly sagged across the curve in overnight trading .The yield on the benchmark 2 year note has increased by a little more than 3 basis points to 2.29 percent. The yield on the 5 year note has jumped by 3 basis points also and ...
Posted in Uncategorized | Comments Off on Opening Comments May 01,2008