Archive for July, 2008
Wednesday, July 16th, 2008
Prices of Treasury coupon securities are modestly higher in overseas trading and have continued the pattern which manifested itself in response to Chairman Bernanke testimony. In that regard the yield curve steepened and price gains in the longest maturities were minimal. The yield on the benchmark 2 year note has ...
Posted in Uncategorized | 1 Comment »
Tuesday, July 15th, 2008
Prices of treasury coupon securities posted disparate results today. It was a tale of two markets. The yield on the 2 year note tumbled 6 basis points to 2.39 percent and the yield on the 5 year note dropped 6 basis points also to 3.11. It gets a little less ...
Posted in Uncategorized | 4 Comments »
Tuesday, July 15th, 2008
Agency spreads are 3 basis points wider in the 2 year sector, 5 basis points wider in the 5 year sector and 4 basis points wider in the 10 year sector. All of the sectors had been as much as 5 basis points wider earlier in the day and have ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, July 15th, 2008
The fortunes of corporate bond spread are inextricably aligned with the gyrations of the stock market. So as stocks cratered this morning the IG 10 hit its widest level of the day. As stocks recovered so did the index and it is currently about 5 better than the worst levels ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, July 15th, 2008
Rates are dropping sharply and the curve is steepening significantly. The yield on the benchmark 2 year note has dropped 10 basis points to 2.36 percent. The yield on the 5year note has also slipped 10basis points to 3.07 percent. The yield on the 10 year note has registered a ...
Posted in Uncategorized | 2 Comments »
Tuesday, July 15th, 2008
The testimony of Federal Reserve Chairman Bernanke chronicles the very difficult and very fluid situation which confronts policymakers. Policy makers confront an economy bedeviled by tight credit, falling home prices ,a soft labor market and an unenthusiastic business sector. The headwinds are strong indeed and he noted that the risks ...
Posted in Uncategorized | Comments Off on Bernanke Testimony
Tuesday, July 15th, 2008
When I began this blog a little over six months ago I discovered that my first choice of a domain name was already taken. I also discovered a very interesting blog where the author makes cogent comments on various interest rate related issues.
The issue of the day is the GSEs ...
Posted in Uncategorized | 2 Comments »
Tuesday, July 15th, 2008
WAMU CDS were recently quoted (wide but real ) at 750/825. They traded at 610 at one point yesterday.
FNMA subs are 190/200 and Freddie subs are 195/205. Each had began the day at 175/185
Posted in Uncategorized | Comments Off on Credit Malaise
Tuesday, July 15th, 2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aV2s.XspUqUw&refer=home
Posted in Uncategorized | Comments Off on Guruess Downgrades Wachovia
Tuesday, July 15th, 2008
This is a working paper discussion authored by a Fed staffer in Washington and it is an excellent history of the stock market crash of October 19, 1987. It details the causes of the crash and the Fed's responses.
I found this very interesting as the Fed's response to this current crisis ...
Posted in Uncategorized | Comments Off on Federal Reserve and the 1987 Stock Crash