Archive for June, 2008
Tuesday, June 24th, 2008
This very long Bloomberg article chronicles the perilous state of GMAC. The company hangs on by a thread. If one joins this link to the list in the previous post (save the Chinese inflation story) it leads very stongly to the conclusion that the Federal Reserve is trapped in a ...
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Monday, June 23rd, 2008
United Parcel Service issues a rather grim profit warning. It is hard to get any more nuts and bolts than this firm and this is the second time they are reducing their Q2 forecast.
Even bleaker times strike United Airlines as it struggles to stay afloat. There will soon be a surfeit ...
Posted in Uncategorized | Comments Off on Some Links for the Insomniacs
Monday, June 23rd, 2008
Prices of Treasury coupon securities opened with a bid this morning as evidence of economic weakness in Europe sparked buying. The gains were fleeting as the specter of supply ($30 billion 2 years and $20billion 5 years) from the treasury ahead of the FOMC meeting motivated traders to establish positions ...
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Monday, June 23rd, 2008
Corporate bond spreads are closing the day about 3 basis points to 4 basis points wider. The IG 10 is closing around 124 ½.There was an increase in new issuance activity with Rio Tinto announcing a multi tranche (5year,10 year , 30year ) which should price tomorrow. Sources expect the ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, June 23rd, 2008
Mortgages have tracked swap spreads most of the day and are about 2 basis points wider to Treasuries. The level of activity has been muted and salesman described the activity as light and two way.There is no compelling theme at the moment in MBS land. Nominal spreads are rather wide ...
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Monday, June 23rd, 2008
Benchmark Treasury securities have exhibited very little change since I wrote this morning. The curve remains flatter on the day as equity markets display a modicum of tranquility.
Swap spreads are wider by about 1 ½ basis points in the belly of the curve.
Mortgage spreads are a basis point wider to ...
Posted in Uncategorized | Comments Off on Update Midday
Monday, June 23rd, 2008
Corporate bond spreads are opening about a basis point wider this morning. There is very little activity, though one salesman notes that the offered side works a whole bunch better than the bid side. The IG 10 is 121 ½ /122 ½. That is about a dozen wider than levels ...
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Monday, June 23rd, 2008
Some overnight Treasury market flows:
Hedge fund sellers 10s.
European end user seller of off the run 10s.
Japanese money manager buys 10s.
US end user sells 5s.
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Monday, June 23rd, 2008
Prices of Treasury coupon securities have posted modest gains in overseas trading. The yield on the benchmark 2 year note has declined a basis point and rests at 2.88 percent. The yield on the 5 year note has dropped 2 basis points to 3.58 percent. The yield on the actively ...
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Saturday, June 21st, 2008
Saudis will argue that speculators are in large part resonsible for the run up in energy prices. King Canute thought that he could command the seas.It didnt work for him.
Here is an interesting take on oil prices from the Arab perspective. No sorrow here for the American guy in his ...
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