Archive for October, 2008
Friday, October 31st, 2008
Here is a note that economists at Credit Suisse distributed on the Chicago PMI. In their opinion it is worse than scary.
CHICAGO PMI 37.8 Oct vs 48.0 consensus, 56.7 Sep
New Orders 32.5 Oct vs 53.9 Sep
Production 30.9 Oct vs 71.4 Sep
Employment 41.5 Oct vs 49.1 Sep
Inventories ...
Posted in Uncategorized | 7 Comments »
Friday, October 31st, 2008
Mortgages are keeping pace with swaps and are three basis points to four basis points tighter on the day. On balance, there has been better buying and the market should maintain its firm tone as the index buyers emerge for month end.
One dealer writes that FNMA 5s have been in ...
Posted in Uncategorized | 1 Comment »
Friday, October 31st, 2008
This is an interesting website. It engages in some blog aggregation and some news gathering from other sources. But it also has a treasure trove of historical relationships which I do not think that you will find anywhere else for free.
Give it a review as I think it is worthwhile ...
Posted in Uncategorized | 8 Comments »
Friday, October 31st, 2008
My money market correspondent reports that the short term money markets are awash in a mountainous sea of liquidity. The target funds rate seems "symbolic" as the central banks push to flood the system with dollar liquidity has forced the funds rate down to 25 basis points.
He notes that there ...
Posted in Uncategorized | 4 Comments »
Friday, October 31st, 2008
Swaps are tighter by 4 1/2 basis points in the 2 year sector at 112 basis points. Five year spreads are tighter by 5 at 100 basis points but most of that is the roll on the new 5 year. Ten year spreads are a basis point tighter at 1 basis ...
Posted in Uncategorized | Comments Off on Swaps
Friday, October 31st, 2008
Libor continues to plunge. Overnight Libor set this morning at 41 basis points versus 73 basis points yesterday.
Three month Libor declined to 3.03 from 3.19 yesterday.
Posted in Uncategorized | 6 Comments »
Friday, October 31st, 2008
San Francisco Federal Reserve Bank President Yellen opines that if the economy remains weak that the FOMC would move Federal Funds target closer to zero. She sees adverse feedback loop at work and wishes to avoid the Japanes experience.
Posted in Uncategorized | 1 Comment »
Friday, October 31st, 2008
Prices of Treasury coupon securities rebounded in overnight trading as the market breathed a sigh of relief that this initial round of supply from the Treasury has been tucked away by dealers and investors. Monetary ease and a stock market decline in Japan helped, too. In Europe, inflation slowed to ...
Posted in Uncategorized | 1 Comment »
Thursday, October 30th, 2008
I have some personal business to attend to and will not blog until later in the day.
Posted in Uncategorized | 4 Comments »
Wednesday, October 29th, 2008
Prices of Treasury coupon securities moved in bifurcated fashion today as the carrot of a one percent funds rate seduced buyers into the front end of the market while the long end of the bond curve languished on supply fears and continued deleveraging by hedge funds.I want to take a ...
Posted in Uncategorized | 1 Comment »