Archive for September, 2008
Wednesday, September 3rd, 2008
I wrote earlier this morning about technical factors which could lead to significantly lower bond yields. A salesmen friend and also friend of the blog pointed out to me that the so called skew in the options market would also lead to the same conclusion.
Players in the swaptions market (options ...
Posted in Uncategorized | 7 Comments »
Wednesday, September 3rd, 2008
I stumbled across this site and thought this graphic representation was as fine a commentary that one would find on bond spreads.
Posted in Uncategorized | Comments Off on A Picture is Worth 1000 Words
Wednesday, September 3rd, 2008
Mortgages are opening 1 tick to 2 ticks wider to Treasuries and about 1 tick wider to swaps. Servicers have been better buyers this morning while some real money clients who had presciently bought at lower dollar prices are taking some chips off the table.
Posted in Uncategorized | Comments Off on MBS
Wednesday, September 3rd, 2008
I receive a lot of information from many people as I do this each day. One of the most useful items is a daily morning market analysis from Greenwich Capital. It is a good summary of overnight events and the events which he market will wade through each day.
The author this ...
Posted in Uncategorized | Comments Off on Breakout
Wednesday, September 3rd, 2008
Bank buying 2 years.
Central Bank seller 20 years.
Central bank seller 10 years.
Bank buyer 2 years.
Buyers of 5 years versus 2 years.
Posted in Uncategorized | Comments Off on Overnight Treasury Flow
Wednesday, September 3rd, 2008
Prices of Treasury coupon securities are, on balance, registering modest losses in overseas trading. The losses in contrast to the very sharp gains yesterday are rather subdued and yields remain bear cycle lows. The yield on the benchmark 2 year note has climbed 2 basis points to 2.28 percent. The ...
Posted in Uncategorized | Comments Off on September 3 2008 Opening
Tuesday, September 2nd, 2008
Swap spreads widened to benchmark Treasury debt today. There was some receiving but it did not keep pace with the buying of Treasuries. So swap spreads lagged Treasury debt by 2 1/2 basis points in the 2 year sector, 2 3/4 basis points in the 5 year sector and 1 ...
Posted in Uncategorized | 7 Comments »
Tuesday, September 2nd, 2008
Prices of Treasury coupon securities have surged today as a variety of fundamental and technical factors have combined to drive prices higher. In a sense, that sentence is a bit of a cop out because as I traveled the investment grade bond universe today I was unable to isolate one ...
Posted in Uncategorized | 3 Comments »
Tuesday, September 2nd, 2008
Corporate Bond spreads have retreated throughout the day in concert with the retreat in the equity market. The IG 10 is currently 142/143 after opening this morning at 140/141.The secondary market is very quiet and dominated by discussions of a tsunami of issuance in September.
Posted in Uncategorized | 1 Comment »
Tuesday, September 2nd, 2008
AfterI wrote my piece on the possible merger of Freddie and Fannie I read this piece at Calculated Risk. It is better written than mine and, disappointinglyfor me, much funnier. It is an excellent commentary on a dumb idea.
Posted in Uncategorized | 6 Comments »