Archive for August, 2008

Food Fight

Thursday, August 7th, 2008

The 30 year bond auction was an old fashioned food fight and actually stopped three basis points rich to where they were trading in the brokers market at the 100 PM bidding deadline.What does that tell us? It means that someone wanted a ton of these things without tipping their ...

Corporate Bonds

Thursday, August 7th, 2008

Corporate bonds are violently unchanged in quiet professional trading. The IG 10 is still wrapped around 132.The new issue market is closed.

Trichet

Thursday, August 7th, 2008

ECB head honcho Trichet has stated that the Euro zone economy will weaken substantially in the months ahead. He also said that inflation would persist too high but at current time he noted that ECB has no bias.The market has chosen to focus on the economic growth part of his ...

Morning Miscellany

Thursday, August 7th, 2008

Walmart reported weak same store sales for July and ventured forth that August sales would be up a less than robust 1 percent to 2 percent. The Gap and Pacific Sunwear also reported weak results.  Some analysts are attributing the weakness to the end on the rebate checks. Those analysts might do ...

MBS

Thursday, August 7th, 2008

Mortgages are opening about 8 ticks wider to Treasury benchmarks this morning. On a Libor OAS basis one correspondent reports that spreads are on top of the wide levels attained last March during the Bear Stearns death rattle.Real money and Asia accounts are noticeable by their absence. In the meantime ...

Credit Market

Thursday, August 7th, 2008

Credit is opening a tad weaker with IG 10 2 basis points wider at 133/134

Overnight Flow

Thursday, August 7th, 2008

Some overnight Treasury flow:Central bank buying 2s Real money buyers of 30s Bank sellers 10s Central bank and speculative sellers of 10s

Bank of England

Thursday, August 7th, 2008

The Bank of England in a terse statement left rates unchanged at 5.0 percent.  The financial world now awaits the ECB and the subsequent ex cathedra pontifications of Mr Trichet. http://www.bankofengland.co.uk/publications/news/2008/044.htm

Opening Thoughts August 7 2008

Thursday, August 7th, 2008

Prices of Treasury coupon securities surged in overnight trading as the gargantuan write down at AIG, in concert with the travails of Freddie Mac, reminded investors that the financial crisis is still running at full tilt nearly one year after it began with no end in sight.The overnight rally significantly ...

2007: Poor Vintage

Wednesday, August 6th, 2008

The Wall Street Journal commissioned a study of mortgages made in 2007 and compared the level of delinquency and loss to other years. It is not a pretty picture.