Archive for December, 2008
Wednesday, December 17th, 2008
The dollar is exsanguinating versus the Euro and the yen. One currency analyst with whom I speak suggests that this move ,while violent, is not an indication that the bear market in dollars has resumed.She argues that the deleveraging which occurred throughout the year has finished and that at the ...
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Wednesday, December 17th, 2008
The IG 11 is retreating after the huge gains and is 3 wider at 245/248.
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Wednesday, December 17th, 2008
Libor US$ Fixing
12/17 12/16 Change
OVERNIGHT .13250 .15938 -0.02688
1 WEEK .27000 .32500 -0.05500
2 WEEKS .66750 .95250 -0.28500
1 MONTH .58125 .88375 -0.30250
2 MONTH ...
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Wednesday, December 17th, 2008
Prices of Treasury coupon securities posted mixed results in overnight trading as investors around the globe absorbed the news of the FOMC's momentous decision yesterday and reacted accordingly. With time to think and reflect investors chose to purchase more long paper and to shun shorter dated paper.Against that background the ...
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Tuesday, December 16th, 2008
Corporate bonds screamed tighter today. The IG 11 is 242/245 which is about 20 tighter on the day. Secondary corporate bond paper is 10 basis points to 20 basis points tighter. Salesmen who have bemoaned the lack of activity reported robust levels of investor demand.
John Deere brought an FDIC bond ...
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Tuesday, December 16th, 2008
These truly are historic times. The FOMC has acted with boldness and élan to apply a tourniquet to the hemorrhaging financial system and economy. The Committee said that it will use all available tools to promote the resumption of sustainable economic growth.
They will keep funds rate at exceptionally low levels ...
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Tuesday, December 16th, 2008
The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to 1/4 percent.Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined. Financial markets remain quite ...
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Tuesday, December 16th, 2008
Agency spreads are unchanged or narrower. Two year spreads are better by 6 basis points. Five year spreads are unchanged and 10 year spreads have narrowed a basis point.
One participant suggested that the out performance of the 2 year sector results from it being caught in the gravitational field of ...
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Tuesday, December 16th, 2008
A friend of the blog reports that FDIC bonds are better by 5 basis points to 10 basis points this morning. With year end nigh issuance should subside and buying should remain robust. That sets up a situation in which this new sector should grind tighter into year end.
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Tuesday, December 16th, 2008
One dealer reports that MBS is opening 8 ticks wider to 10 years and 4 ticks wider to 5 years. Most of that widening occurred in the period between 300PM and 500PM last evening. End user clients and mortgage bankers have been better sellers. Retail interest is very light this ...
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