Archive for November, 2008

Miscellany

Monday, November 10th, 2008

The Treasury market has staged a nice rally ahead of the 3 year note auction. I have not been able to ascertain a specific proximate cause. Several traders cited the stock market as a factor because it surrendered the large gains with which it opened the day. Futures are leading the ...

AIG

Monday, November 10th, 2008

In response to the less onerous terms of the government rescue package AIG 10 year bonds have catapulted from the 30s to the 50s.

There Are No Cliffs at Broad and Pearl?

Monday, November 10th, 2008

Goldman stock breaking down hard today and is off just under 7 percent.

Treasury Miscellany

Monday, November 10th, 2008

The Treasury market closes at 200PM today for the Veterans Day holiday tomorrow. There has been some central bank selling of the front end this morning. The Treasury will sell $25 billion 3 year notes at 1130AM New York time. They are + 55 1/2 basis points cheap to 2 year notes. ...

IG 11

Monday, November 10th, 2008

IG 11 is now 183/185 after opening around 180. It closed 188/190. Circuit City has filed for bankruptcy and DB has a target of ZERO for GM stock.

Opening Comments November 10 2008

Monday, November 10th, 2008

Prices of Treasury coupon securities are sagging in overnight trading as news that China will spend nearly $600 billion to stimulate its slumping economy sparked robust rallies in global stock exchanges. There is also the small matter of the $55 billion refunding package which begins today with the sale of ...

Libor Chart

Monday, November 10th, 2008

Libor US$ Fixing 11/10 11/07 Change OVERNIGHT .35000 .33125 .01875 1 WEEK .83750 .86250 -.02500 2 WEEKS 1.07875 1.11250 -.03375 1 MONTH 1.53875 1.62250 -.08375 2 MONTH 2.10375 2.15875 -.05500 3 MONTH 2.23500 2.29000 -.05500 4 MONTH 2.37000 2.40500 -.03500 5 MONTH 2.49625 2.51750 -.02125 6 MONTH 2.62125 2.63875 -.01750 9 MONTH 2.71875 2.73500 -.01625 12 MONTH 2.79250 2.80000 -.00750

Agency Market

Friday, November 7th, 2008

Agency spreads are tighter by 7 basis points in the 2 year sector, 1 basis point in the 5 year sector and 4 basis points in the 10 year sector.Traders report robust demand across most sectors and especially in the maturities shorter than 2 years. Agencies have benefited from the ongoing ...

Corporate Bonds

Friday, November 7th, 2008

Corporate bond spreads are unchanged today with very light trading volume. One salesman reported some selective buying in a few names. He cited several buyers of Conoco 5 year and 10 year paper as well as some interest in first mortgage utility bonds.Some of the issues which I try to ...

HSBC on the Labor Report

Friday, November 7th, 2008

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