Archive for November, 2008

Treasury Fails

Friday, November 7th, 2008

The Treasury will investigate large positions in an old 2 year note and an old 5 year note. The issues trade at zero in repo and have been failing heavily. Anyone with a position of greater than $2billion will be required to report those positions to the Federal Reserve. I wonder ...

Treasury Stuff

Friday, November 7th, 2008

Treasury bond yields are rising in spite of the bond friendly labor data  released this morning. Participants report selling by dealers and customers as the community prepares to price and bid the refunding issues next week. One salesmen said that it was a case in which the market would be ...

MBS

Friday, November 7th, 2008

Mortgages are about 4/32 tighter to swaps. Asian clients were better buyers of GNMA paper overnight and there is convexity buying this morning. FNMA 5s have outperformed the swap curve by 2 points thus far this week.Origination selling is light in early trading.

IG 11

Friday, November 7th, 2008

IG 11 is opening at 193 1/2 which is about 1 tighter than the previous close.

Full Libor Chart

Friday, November 7th, 2008

Libor US$ Fixing 11/07 11/06 Change OVERNIGHT .33125 .32750 .00375 1 WEEK .86250 .85000 .01250 2 WEEKS 1.11250 1.18125 -.06875 1 MONTH 1.62250 1.76750 -.14500 2 MONTH 2.15875 2.24875 -.09000 3 MONTH 2.29000 2.38750 -.09750 4 MONTH 2.40500 2.48875 -.08375 5 MONTH 2.51750 2.60125 -.08375 6 MONTH 2.63875 2.69875 -.06000 9 MONTH 2.73500 2.78750 -.05250 12 MONTH 2.80000 2.84125 -.04125

Libor Open

Friday, November 7th, 2008

*TED SPREAD NARROWS 9 BASIS POINTS TO 199 BASIS POINTS *THREE-MONTH DOLLAR LIBOR 2.29% VERSUS 2.39%, BBA SAYS *OVERNIGHT DOLLAR LIBOR LITTLE CHANGED AT 0.33%, BBA SAYS

Some Opening Comments November 7 2008

Friday, November 7th, 2008

Prices of Treasury coupon securities have posted small and meaningless mixed changes as market participants await the monthly labor report later this morning. The yield on the benchmark 2 year note has edged higher by a single basis point to 1.29 percent. The yield on the 5 year note has ...

Anecdotal Evidence

Thursday, November 6th, 2008

This compilation was sent to me by a former colleague and friend of the blog. It illustrates the breadth of economic weakness which the credit crunch has spawned. ALL TODAY:                                            ...

Treasury Close November 6 2008

Thursday, November 6th, 2008

Prices of Treasury coupon securities posted mixed results today with a firm bid in the shorter securities and a dearth of bids in the longer maturities. The yield on benchmark 2 year note declined 6 basis points to 1.28 percent. (I believe the low yield in this cycle was 1.25 ...

MBS, Swaps, Agencies

Thursday, November 6th, 2008

Mortgages are closing about 4 ticks wider to swaps.For the most part, swaps lagged benchmark Treasury debt today. Two year spreads widened by 3 basis points to 107 ½ basis points. Five year sector spreads also widened 3 basis points to finish at 102 ¾ basis points. Ten year spreads ...