Archive for August, 2008
Tuesday, August 12th, 2008
Prices of Treasury coupon securities surged as a variety of forces joined together to push rates lower. In the overnight session JPMorgan and UBS genuflected before the altar of credit related losses by writing down impaired assets. The JPMorgan action was particularly troublesome as they have been as troubled as ...
Posted in Uncategorized | Comments Off on Closing Comments August 12 2008
Tuesday, August 12th, 2008
Agency spreads are tighter by about ½ basis point across the curve ,except in the 3 year sector in which supply weighed on sentiment. FNMA announced $3 billion of a new issue and the price talk it T2+ 124. There is a Home Loan issue one month shorter trading at +116. ...
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Tuesday, August 12th, 2008
The corporate bond market is virtually closed for cash business but there has been some rumbling in new issue space.Earlier today Wells Fargo brought $25 preferred stock deal with an 8 5/8 percent coupon. The issue received enthusiastic reception from investors and trades a tad above $25 as we speak.
Citibank ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Tuesday, August 12th, 2008
I was just reading the note which JPMorgan clients sent to clients regarding the Trade balance data this morning.In the initial GDP release for Q2 the Commerce Department made assumptions about trade which resulted in exports adding 2.4 percent to Q2 GDP. With the release of the trade data today ...
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Tuesday, August 12th, 2008
The IG 10 opened about unchanged today. One dealer whom I read noted that the technicals in the index are strong but fading.The same writer noted shifting fundamentals which should serve to widen spreads. So while the price of oil is dropping that is very much an outward sign of ...
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Tuesday, August 12th, 2008
Mortgage flows overnight were very light. Asian buyers are still giving the market a vote of no confidence with their absence from the market. Absent buyers, the steady stream, albeit small, of sellers will nudge the basis wider.
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Tuesday, August 12th, 2008
The National Federation of Independent Businesses, the trade group for small businesses, reported that its business optimism survey fell to 88.2 in July from 89.2 in June. I quickly eyeballed the numbers from 2007 and the average for all of 2007 is around 95. Ominously capital spending plans by the ...
Posted in Uncategorized | Comments Off on Morning Miscellany
Tuesday, August 12th, 2008
Some overnight treasury stuff:Central Bank buyer 5s
Central Bank seller 10s.
Prop seller 30s
Fund buyer of the run 10s.
Japanese receiving 2s.
Posted in Uncategorized | Comments Off on Overnight Flow
Tuesday, August 12th, 2008
As Russia experiences a rebirth of its imperialist urges and reprises some of the less noble moments of its recent past, it is with some sadness and irony that I would reflect that tomorrow, August 13, marks the 47th anniversary of the building of the Berlin Wall.
That wall stood as ...
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Tuesday, August 12th, 2008
Prices of Treasury coupon prices edged higher in overnight trading as the dollar maintained its strength and commodity prices continued their slide. Oil gold and copper have all slumped to new lows overnight.The perpetual credit crisis chugs along unabated as JPMorgan reported that market conditions compelled it to write down ...
Posted in Uncategorized | Comments Off on Opening Comments August 12 2008