Archive for June, 2008

The Roll

Wednesday, June 25th, 2008

I tend to employ a lot of jargon here as I write about bonds. The genesis of this blog was similar pieces that I wrote for institutional investor clients when I worked for remuneration. I wrote essentially the same material and with the same frequency and was read internally by ...

Six Months to Christmas (and Remittance Day for ABX)

Wednesday, June 25th, 2008

Today is remittance day in the murky world of subprime mortgages and that means participants get a snapshot of the loans which have caused so much financial pain.Delinquencies continue to increase in dollar terms and percentage terms. However, the pace of increase has slowed significantly. Voluntary prepayments have slowed to about ...

Some Opening Comments June 25 2008

Wednesday, June 25th, 2008

Prices of Treasury coupon securities have slipped modestly in overnight trading as angst filled investors await the announcement of the result of the FOMC conclave which will conclude today. ECB President Trichet reiterated that the ECB is on "heightened alert" and that added to the uncertainty and anxiety. Additionally, financial ...

Some Links

Tuesday, June 24th, 2008

Inflation rears its ugly head. At some price the demand for petrol is elastic. Inflation hawks in India

Some Closing Comments June 24 2008

Tuesday, June 24th, 2008

Prices of Treasury coupon securities have surged this afternoon following the better than expected result of the 2 year note auction. The Treasury sold $30 billion 2year notes at a yield of 2.922 percent. That yield was about 1 ¼ basis points richer than where the security was offered in ...

Corporates

Tuesday, June 24th, 2008

Corporate bonds are sagging under the weight of economic weakness. The last quote I observed on the IG 10 had it about 5 wider on the day. A cash bond salesman relates the cash is probably 5 basis points to 7 basis points wider on the day.The highlight in the ...

Potpourri

Tuesday, June 24th, 2008

Benchmark Treasury securities are posting modest gains. I think the gains are very modest in light of the economic data. The litany of bleak data began with the UPS profit warning late yesterday. It continued with the Case Schiller housing report. Some have found solace in that report but the ...

HSBC on Case Schiller

Tuesday, June 24th, 2008

Here is a quick note from HSBC economists on the Case Schiller Index.  I guess the take away here is that it is still bad but the pace of decline is slowing. HSBC: US S&P Apr Case-Shiller Home Prices - A Better Bad * Prices keep dropping, but are the drops finally ...

Some Overnight Treasury Flow

Tuesday, June 24th, 2008

Some overnight treasury flow:Speculators buy 2 years. Central Banks and hedge funds buy 2 year and off run 2 year series. Central Banks and commercial bank selling of the 4 year sector. Modest selling in 30 year sector(undefined account and venue) European end user buys 10 years. End user from Asia sells 18moth sector in ...

Opening Comments for June 24 2008

Tuesday, June 24th, 2008

Prices of Treasury coupon securities have edged higher in overnight trading as higher energy prices ,slowing growth and the tribulations of the financial sector weigh on sentiment. In particular, the profit warning by UPS after the close of US trading buttressed the view that growth in the US is slowing. ...