Archive for November, 2008

Opening Comments November 25 2008

Tuesday, November 25th, 2008

Prices of Treasury coupon securities surged in overnight trading partially reversing some of the huge declines suffered yesterday. As I review the overnight economic data there does not appear to be a single story which I can cite as the proximate cause for the rally. There is the usual array ...

Closing Comments November 24 2008

Monday, November 24th, 2008

Prices of Treasury coupon securities took a severe pounding today as the Citibank rescue ignited a stock market rally and a euphoria that enervated the treasury market. The Treasury market suffered, too, from supply jitters as the Treasury sold $36 billion 2 year notes into light demand. The issue had ...

Agency Debt

Monday, November 24th, 2008

Agencies are tighter by 2 basis points in the 2 year sector and unchanged in the 3 year sector. Five year spreads are tighter by 4 basis points and 10 year spreads are better by 2 basis points.The conversations regarding issuance of FDIC guaranteed bonds by large financial entities had ...

Corporate Bonds

Monday, November 24th, 2008

It was a very slow day in corporate bond land. There were no new issues. There was a lot of hoopla regarding the Goldman FDIC guaranteed deal. I have not seen anything in print regarding exact size or maturity. The FDIC guarantee does not extend beyond June 30 2012 so ...

Credit Default Swaps on US Treasury Debt: Wider

Monday, November 24th, 2008

Protection against a default by the US government widened to record levels today in response to the latest bailout effort. Thanks to reader NDK for pointing that out in a comment section of an earlier posting.


Monday, November 24th, 2008

The Treasury is selling $36 billion 2 year notes at 100PM New York time. The issue is cheap to the new 3 year note as with the forward roll the 2 year/3 year spread is about 22 basis points. During the refunding process, that spread trading regularly in the 50s. Similarly, ...

The Mighty Greenback

Monday, November 24th, 2008

The dollar has weakened against the Euro and the Euro has broken through resistance at $1.2700/$1.2720. The 20 day moving average is $1.2697 and one analyst noted that until now it had been unable to break through that level since September. The Euro is currently $1.2771. I note that gold has ...

IG 11

Monday, November 24th, 2008

IG 11 opening 8 tighter at 257/261.

Some Opening Thoughts November 24 2008

Monday, November 24th, 2008

Prices of Treasury coupon securities are mostly modestly lower in overnight trading as the Citibank bailout ignited equity market advances which make fixed income assets less desirable. Supply is also a factor as the United States Treasury will come to market today for $36 billion 2 year notes and once ...

Text of Joint Statement of Citi Rescue Package

Monday, November 24th, 2008

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