Archive for November, 2008

Term Auction Facility: No Demand for Year End Money

Wednesday, November 12th, 2008

The Federal Reserve announced the results of an auction  for money which will be made available on December 22 and which would expire on January 09 2009. There was virtually no demand for the money. The Central Bank offered $150 billion and it received bids for less than $13 billion. There would ...

IG11

Wednesday, November 12th, 2008

The initial quote I have received on the IG 11 is wide but real at 192/197. That according to the missive I received is about 8 wider.

Libor Chart

Wednesday, November 12th, 2008

Libor US$ Fixing 11/12 11/11 Change 1 WEEK .84000 .80250 .03750 2 WEEKS 1.04000 1.04375 -.00375 1 MONTH 1.40875 1.47750 -.06875 2 MONTH 2.01625 2.04625 -.03000 3 MONTH 2.13250 2.17500 -.04250 4 MONTH 2.27375 2.30625 -.03250 5 MONTH 2.39125 2.42375 -.03250 6 MONTH 2.52500 2.54500 -.02000 9 MONTH 2.60750 2.62375 -.01625 12 MONTH 2.68250 2.70750 -.02500

Some Opening Comments November 12 2008

Wednesday, November 12th, 2008

Prices of Treasury coupon securities have posted modest gains in overnight trading as fears about the severity of the global economic downturn trump the mountain of debt that the Treasury is issuing this week.Against that background, the yield on the 2 year note slipped 3 basis points to a cycle ...

Bedtime Reading

Tuesday, November 11th, 2008

Reuters  with a story about the trials, tribulations and travails shich shall soon strike the credit card industry. I am a tad late getting to this one but Professor Hamilton writes an illuminating piece on the funds rate in the new world of a swollen Federal Reserve balance sheet.

GMAC

Tuesday, November 11th, 2008

BN    13:47    *GMAC LLC SR DEBT CUT TO CC FROM B+ BY FITCH            :GM1 US BN    13:47    *CORRECT: FITCH CUTS GMAC LLC IDR TO CCC FROM B+ FII    13:46    Correction - Fitch Dwngrs GMAC LLC IDR to 'CCC'; Watch Negative BN    ...

June 13 2003

Tuesday, November 11th, 2008

My sister turned 41 years old that day and in a mutually exclusive event bond yields touched multi decade lows on that date. I had a friend of the blog provide me with the information from the Bloomberg. On that day the 2 year note traded at 1.084 percent. The 5 ...

Administrative Note

Tuesday, November 11th, 2008

The Treasury market is closed today in honor of Veterans Day. Therefore, blogging will be sporadic.

Nepotism

Monday, November 10th, 2008

There is some nepotism at work here and some genuine pride as I add the Charlottesville Ballet to the blog roll. I expect that it will be the only non financial site on the blog roll. It is a new venture (non profit) organized by my daughter and her friend to ...

Three Year Note Auction

Monday, November 10th, 2008

The three year note in its reprise on the Treasury stage received loud applause and an enthusiastic reception from investors. The issue stopped four basis points more expensive that where it was trading in the screens moments before the auction. In retrospect, the market sold off Friday after good for the ...