Archive for December, 2008

Agency Stuff

Tuesday, December 2nd, 2008

Agency spreads continue to tighten with 5 year and 10 year spreads tighter by about a dozen basis points today. There has been chunky buying from domestic retail accounts and foreigners who have held a predilection to sell have held their fire for now.There is talk that the Federal Reserve ...

Corporate Market

Tuesday, December 2nd, 2008

There is some active issuance in the corporate bond market today. Hewlett Packard is offering a long 5 year (March 2014). The size has not been determined but it will be $1billion plus. Spread talk is wide but real at T+ 450,which is about 100basis points cheap to outstanding Hewlett paper. Caterpillar ...

IG 11

Tuesday, December 2nd, 2008

The IG 11 is opening about 1 basis point tighter at 258/261.

Libor

Tuesday, December 2nd, 2008

Libor US$ Fixing                  12/02        12/01      Change          OVERNIGHT       1.00375      1.08750    -.08375 1 WEEK          1.19875      1.20625    -.00750 2 WEEKS         1.29000      1.30375    -.01375 1 MONTH    ...

Opening Comments December 02 2008

Tuesday, December 2nd, 2008

Prices of Treasury coupon securities are posting modest gains in overnight trading and remained poised to push through the record and historic lows attained yesterday.The yield on the 2 year note dropped 4 basis points to 0.86 percent. The yield on the 3 year note fell 3 basis points to ...

CMBX and ABX

Tuesday, December 2nd, 2008

CMBX and ABX tranches suffered an impolite bludgeoning today.  AAA CMBX widened 80 basis points to 100 basis points. AJ tranches widened 110basis points to 125 basis points. Slices of the capital structure below AAA widened 30 basis points to 150 basis points. One commentator noted that AAAs have not surrendered all ...

Low Yields

Tuesday, December 2nd, 2008

Here are what  I believe are the lowest yields attained today on benchmark Treasury debt:                                         2 year     0.85                                                    5 year     1.65                                                     10 year   2.65                                                      30 year  3.18 Save them for your grandchildren and let them know that you were there the day the music died!

Antipodean Angst

Monday, December 1st, 2008

Australia slashes rates by 100 basis points.

Closing Comments December 01 2008

Monday, December 1st, 2008

Prices of Treasury coupon securities have surged today in another historic trading session as yields once again plumb depths never thought imaginable. Stock market routs around the globe motivated early trading as did pervasive weakness in global manufacturing activity. Domestic economic data released in the US magnified the weakness as ...

JPMorgan on the ISM

Monday, December 1st, 2008

JPMorgan has reviewed the ISM data and the conclusions are strikingly downbeat and negative. There is no good news hiding in the shadows of this one: if (typeof YAHOO == "undefined") { var YAHOO = {}; } YAHOO.Shortcuts = YAHOO.Shortcuts || {}; YAHOO.Shortcuts.hasSensitiveText = true; ...