Archive for August, 2008

Closing Comments August 11 2008

Monday, August 11th, 2008

Prices of treasury coupon securities plummeted today in light trading. Many people with whom I speak are on vacation and I think that is a universal theme. So trading is relatively thin and illiquid.I would also note that for the second consecutive Monday traffic at this website will be about ...

Agony and the Agency

Monday, August 11th, 2008

Agency spreads are tighter by 1 ½ basis points to 2 ½ basis points today. Trading is very light and very thin. One trader with whom I regularly converse had seen some bid lists at the short end of the agency market but for very small amounts.I did converse with ...

IG 10

Monday, August 11th, 2008

The IG 10 is wrapped around 131 now which makes it about 2 ½ basis points tighter on the day.

Treasury Market: Soporific

Monday, August 11th, 2008

The Treasury market is reasonably quiet today. I have heard of central bank buying in the 2 year sector (Asian) and a variety of buyers of 4 year paper. One salesman noted that the 4 year sector is approximately the point at which yields reach the 3.00 percent level.Another trader ...

MBS

Monday, August 11th, 2008

Mortgages have manifested a predilection to widen this morning and are 5 ticks to 6 ticks wider to Treasuries. There has been selling by fast money, money mangers and originators.Some suggest that it is a consolidation of the strong gains of Friday. Others have commented that it is a reaction ...

The Mighty Greenback

Monday, August 11th, 2008

Last week was a very good week for the US dollar. The Euro had been in a four month range with a high around $1.60 and a low in the $1.5280 /1.5300 area. The bottom of that range did not hold on Friday.The 200 day moving average of $1.5225 did ...

Credit Open

Monday, August 11th, 2008

The IG 10 is opening about 1 1/2 basis points tighter at 132.

Opening Comments August 11 2008

Monday, August 11th, 2008

Prices of Treasury coupon securities have posted mixed results in overnight trading. The yield on the 2 year note has slipped 2 basis points lower to 2.47 percent. The yield on the 5 year note has declined 1 basis point to 3.18 percent. The yield on the benchmark 10 year ...

TOP

Friday, August 8th, 2008

The Federal Reserve Bank of New York has announced details of the TSLF TOP program which will cover the September quarter end. At a later date they will provide details for the operation which will cover the year end period.

Closing Comments 08-08-08

Friday, August 8th, 2008

Prices of Treasury coupon securities registered mixed results today. I will begin with the Long bond because its yield declined about a basis point. If you recall our many discussions yesterday, the dealer community took 58 percent of the issue and indirect bidders took 42 percent. It feels as though ...