Archive for October, 2008

Agency Market

Wednesday, October 29th, 2008

The agency market has improved today and has a firm tone about it. Spreads are tighter by about 10 basis points across the curve. Dealers report that the gains on the equity market have been supportive of agencies as the improving equity market reflects a system that bears less strain ...

Corporate Bonds

Wednesday, October 29th, 2008

The corporate bond market has a better, if not firm, tone about it and dealers and investors transact pockets of business in a still wounded market. The IG 11 reflects that better tone as it is currently a couple better on the day at 108/210.The Amex 5 year which I ...

MBS

Wednesday, October 29th, 2008

Mortgages are opening stronger and are currently about 13/32 better than the 10 year Treasury. Real money buyers abound and there are no sellers.

Swaps and Agency Spreads

Wednesday, October 29th, 2008

Agency spreads are tighter by 7 basis points in the 2 year sector, one basis point in the 5 year sector and 2 basis points in the 10 year sector.Swap spreads are tighter by 5 basis points in the 2 year sector and 1 ½ basis points wider in the ...

Libor Open

Wednesday, October 29th, 2008

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IG 11

Wednesday, October 29th, 2008

IG 11 is opening 212/214 which is about 2 basis points wider than the previous close.

Opening Thoughts October 29 2008

Wednesday, October 29th, 2008

Prices of Treasury coupon securities have rebounded from the depressed levels attained in late trading yesterday. I can not ascribe the recovery to a particular overnight news story. I surmise  that the decline in equity futures overnight which has erased about ¼ of yesterday's outsized gains has combined with the ...

Supply

Wednesday, October 29th, 2008

The FT has an informative article about the tsunami of bond issuance which will flood the European capital markets in the next year.

Swaps and MBS

Tuesday, October 28th, 2008

Swaps are finishing mixed. The 2 year spread is unchanged and the 5 year spread is a basis point tighter. The 10 year spread is 3 basis points wider and the 30 year spread is 5 basis points wider.  MBS opened tighter but are closing about 8 basis points wider to ...

Closing Comments October 28 2008

Tuesday, October 28th, 2008

Prices of Treasury coupon securities took a dive from a cliff today with longer dated maturities suffering significant damage. The reason is very similar to yesterday in that the market is experiencing a collective epiphany regarding the need of the US Treasury to raise funds.The yield on the benchmark 2 ...