Some Overnight Treasury Flow
Monday, July 28th, 2008Some overnight Treasury flow: Bank selling of 2 year sector. Spec sellers of 5s. Central bank sellers of 10s. Japanese end user buying 10s. Speculators buying 20 year sector.
Archive for July, 2008
Some overnight Treasury flow: Bank selling of 2 year sector. Spec sellers of 5s. Central bank sellers of 10s. Japanese end user buying 10s. Speculators buying 20 year sector.
TSLF
Monday, July 28th, 2008Last week the Federal Reserve conducted a Term Security Lending Facility auction and there was a surprisingly high level of interest in the auction. Bids were high but the stop out level remained in line with recent auctions. I could not come up with a solid reason for the result ...
Some Links for Monday July 28 ,2008
Monday, July 28th, 2008ANZ reports that credit problems are mounting and triples its provision for bad debts. Spanish inflation rate rising and home prices are falling. German consumer confidence falls to a 5 year low. A daily tracking poll of the US election has Obama widening his lead over Mc Cain to 9 points. I do ...
July 28, 2008 Opening Comments
Monday, July 28th, 2008Prices of Treasury coupon securities surged in overnight trading as economic weakness and credit fears motivated investors to seek the relative safety of Treasury securities. ANZ bank in Australia reinforced the notion that the banking sector will remain troubled as it tripled its provision for bad loans. In Germany, consumer confidence fell ...
Time is on His Side
Sunday, July 27th, 2008Reuters notes that Mick Jagger is turning 65 years old. I never enjoyed the Rolling Stones the way I enjoyed some of the other iconic groups of the 1960s. The Beatles led the charge across the ocean and I always thought that the music which they produced was better than the Stones. ...
Bank Failures
Saturday, July 26th, 2008The Wall Street Journal reports that FDIC employees have another summer weekend interrupted by banks succumbing to the credit crunch.
July 25 2008 Close
Friday, July 25th, 2008Prices of Treasury coupon securities plunged today as economic data released today demonstrated that the economy, while weakened , still maintains a modicum of vitality. Specifically, the durable goods report showed that business investment is still solid and is a bit of ballast for the economy as the consumer retrenches.New ...
Agency Bonds
Friday, July 25th, 2008Agency spreads are 1 basis point to 2 basis points wider on the day.The Federal Home Loan System priced $3 billion 2 year notes at T+ 78 ½ . The issue is closing bid at that level. They typically issue $3billion or $4billion so it was on the smaller side. ...
Corporate Bonds
Friday, July 25th, 2008It was a quiet day in the corporate bond market. The principal story of the day has been WAMU. They have some outstanding preferred stock which was issued at 100 with 6 percent coupons. (The gentleman who was kind enough to give me this stuff did not have the precise ...
MBS and Swaps
Friday, July 25th, 2008Mortgages are languishing today in a very lethargic trading session. They are currently 4 ticks weaker to swaps.Swap spreads are about a basis point wider on the day after being 2 basis points wider earlier in the day. The early widening trade was in response to the write downs by ...