Archive for September, 2008

Supply

Friday, September 19th, 2008

The Treasury was a huge seller of short dated Tbills last week as it resupplied the Federal Reserve with an armada of bills to fight the liquidity wars. The onslaught of supply continues next week. The Treasury will offer its regular fare of three month bills and six month bills on ...

Christmas Tree

Friday, September 19th, 2008

Since the rescue package was announced with glitter, fanfare, a drumroll , and proclamations of political comity last evening I have been a sceptic that a bill could pass unadorned and unencumbered by unrelated matters. The NYTimes and Politico.com each carry stories which touch on that topic.

Reuters With Nuggets on the TARP

Friday, September 19th, 2008

Reuters, citing anonymous sources , says that the rescue plan will not be available to foreign entities or hedge funds. The package will allow the Treasury to buy CDOs, whole loans and MBS.

Closing Comments September 19 2008

Friday, September 19th, 2008

Prices of Treasury coupon securities plummeted today as the apparent agreement by the Administration and the Congress fostered a flight from Treasury debt to other asset classes. In one day the deepest fear to grip the markets since the Great Depression retreated.The yield on the benchmark 2 year note increased ...

Agency Spreads

Friday, September 19th, 2008

Agency paper in the 2 year sector has tightened by 18 basis points to the benchmark 2 year note. In the 5 year sector spreads are tighter by 10 basis points and in the 10 year sector spreads have improved 9 basis points. The Fed announced earlier today that it would ...

Paulson

Friday, September 19th, 2008

I just listened to Secretary Paulson in the video room here at the corporate headquarters of Across the Curve and he is still short on details. He did offer that the size of the illiquid asset plan would be significant and in response to a question averred that it would ...

Money Markets :

Friday, September 19th, 2008

There has been a dramatic mood change in the money markets as a result of the historic and radical actions of the Federal Reserve System and the Treasury. The trader with whom I normally chat on this topic notes that he has seen better buying but not to the degree ...

Federal Reserve Statement

Friday, September 19th, 2008

In another radical measure to stabilize markets the Federal Reserve will provide liquidity for the Asset Backed Commercial paper market. Separately, the Open Market Desk will purchase short term agency paper from dealers.

IG 10

Friday, September 19th, 2008

IG 10 is trading around 150.  It closed around 190. There is chunky buying in the secondary market with financials leading the charge.

ABX

Friday, September 19th, 2008

ABX is where this all began. The news that the treasury and the taxpayer is the buyer of last resort has the animal spirits racing in holders of this very toxic stuff. One dealer has AAA tranches better by 2 3/4 points to 5 points.  The price gains are chronologically ...