Archive for October, 2008
Wednesday, October 8th, 2008
The IG 11 is back to levels at which it closed last night and a recent dealer quote made it 178 1/2 to 180 ½.Once again the secondary cash market is moribund.
The Amex 5 year bond which I love to watch is 700 /650. For the uninitiated that is senior ...
Posted in Uncategorized | 4 Comments »
Wednesday, October 8th, 2008
Mortgages are 2 ticks wider to swaps. They were much wider earlier when the cavalry in the form of fast money buyers emerged.There is no balance sheet as dollar rolls imply funding between 4 percent and 5 percent.
The central bank lowered the target funds rate to 1 ½ percent. The ...
Posted in Uncategorized | 12 Comments »
Wednesday, October 8th, 2008
One FX analyst whose output I regularly review ( but who does not wish to quoted for attribution) makes some interesting points to make about Eurpean government bond markets and the EMU.
There is tension in Europe over the credit crunch/financial crisis. To this point there has not been a unified ...
Posted in Uncategorized | 3 Comments »
Wednesday, October 8th, 2008
Swap Spreads are wider by about 4 basis point at the 2 year point and are tighter by a basis point in 5 years and tighter by 2 1/4 basis points in the 10 year sector.
Posted in Uncategorized | Comments Off on Swaps
Wednesday, October 8th, 2008
The IG 11 was quoted 170/175 in the aftermath of the rate cut. It closed last night at 179.
Posted in Uncategorized | Comments Off on IG 11
Wednesday, October 8th, 2008
The Federal Reserve has just slashed the funds rate by 50 basis points and has been joined by several other central banks who have also cut rates. The statement by the FOMC recapitulates several lines from Bernanke's speech of yesterday.
It will be interesting to see how this unfolds. Stock futures ...
Posted in Uncategorized | 2 Comments »
Wednesday, October 8th, 2008
Prices of Treasury coupon securities are surging as the turmoil in the world financial markets deepens and resists the best laid plans of policymakers to alter its course.Stock markets are plunging across the globe. The Japanese stock market suggered it's the third largest loss ever and its steepest decline since ...
Posted in Uncategorized | Comments Off on Some Opening Comments October 8 2008
Wednesday, October 8th, 2008
With world markets and the financial system teetering at the edge of a true calamity, the UK Treasury has acted to make available as much as 200 billion sterling to major UK banks. The program will recapitalize the banking system and will keep the system awash in liquidity.
Asian and Ausralian stocks have ...
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Tuesday, October 7th, 2008
Prices of Treasury coupon securities were mostly lower today as the market suffered through a lackadaisical session. I still have a concern about the legs of the rally in the treasury market as the market has a tired feel about it.There are several reasons for this lethargy. First the market ...
Posted in Uncategorized | 4 Comments »
Tuesday, October 7th, 2008
Swap spreads are tighter by 6 basis points in the 2 year sector and by 2 ½ basis points in the 5 year and 10 year sectors. In the 30 year sector spreads have narrowed by just a ¼ basis point.FNMA 5 ½ s are 2/32 tighter to swaps. There ...
Posted in Uncategorized | 5 Comments »