Archive for May, 2008

MBS Flow

Thursday, May 22nd, 2008

Some mortgage flows:Light selling from originators. Heavy outright buying by overseas end users. Some modest selling by hedge funds and domestic money managers. Some selling of 5s and 5 1/2s by convexity types. Hot money looking to go up in coupon

Update

Thursday, May 22nd, 2008

Treasury yields are rising rather dramatically this morning and the 2 year note has breached the 2.50 percent level. As we speak the 10 year note is approaching the 3.937 percent level at which it auctioned recently. If it breaks through that level and sustains trading through that level we ...

Shipping News

Thursday, May 22nd, 2008

Marketwatch reports that the Baltic Dry Index has surged recently. The story notes that the index is driven by a strong economy as well as robust demand for commodities.

Treasury Flow

Thursday, May 22nd, 2008

Some overnight flows in Treasury market:Real money and bank buying of 5 year notes. Real money and central bank buying 10s. Asian selling of 2 year sector.

Some Links

Thursday, May 22nd, 2008

Big banks propose moving the goal posts. UBS throws existing shareholders under BUS. This is a piece of history from the Op Ed page of the New York Times today. I am a minor junkie for 1960s history and this brief article correctly encapsulated the meeting between Krushchev and JFK in Vienna ...

Opening Comments May 22 2008

Thursday, May 22nd, 2008

Prices of Treasury coupon securities, on balance, posted modest losses in overseas trading and the yield demonstrated a propensity to flatten. The yield on the benchmark 2 year note gained to basis points and currently trades at 2.42 percent. The yield on the benchmark 5 year note also rose by ...

Stream Of Consciousness

Wednesday, May 21st, 2008

Prices of Treasury coupon securities registered solid losses prior to the release of the FOMC minutes as a variety of factors conspired to drive prices lower. With the release of the rather downbeat minutes of the April 30 meeting, equity markets sold off sharply and the bond market recovered briefly ...

Corporate Bonds

Wednesday, May 21st, 2008

Corporate bond spreads as gauged by the IG 10 are about 5 basis points wider. There are several new benchmark deals in the pipeline. The French utility Veolia is in the market with a multi tranche deal. International Lease Financing is offering debt with a 5 ½ year maturity and ...

Admin Note

Wednesday, May 21st, 2008

Life intervened, as it sometimes does, and I have been away from my workstation here at the nerve center of Across the Curve. As soon as I have an appropriate story, I will begin posting. JJJ

Abbreviated Opening Comments

Wednesday, May 21st, 2008

Prices of Treasury coupon securities have registered modest declines in overseas trading as equity markets around the globe exhibit a modicum of stability this morning. Japanese stocks declined on fears of weakness in the financial sector but shares were up in Hong Kong and mainland China. European stocks are higher ...