Archive for December, 2008

HSBC on Empire Survey

Monday, December 15th, 2008

 Empire index was nearly unchanged at -25.8 (consensus -28) vs -25.4 in Nov    * Key measures of activity improved from Nov but stayed deep in negative          territory: shipments -9 from -14, new orders -21 from -22, and employment       -23 from -29        ...

IG 11

Monday, December 15th, 2008

IG 11 is opening 2 basis points wider at 263/266.

Libor Charts

Monday, December 15th, 2008

Libor US$ Fixing 12/15 12/12 Change OVERNIGHT .11938 .11875 0.00063 1 WEEK .32000 .36250 -0.04250 2 WEEKS .45375 .48750 -0.03375 1 MONTH .96125 1.04000 -0.07875 2 MONTH 1.61375 1.68063 -0.06688 3 MONTH 1.87125 1.92125 -0.05000 4 MONTH 1.99250 2.02125 -0.02875 5 MONTH 2.12375 2.13375 -0.01000 6 MONTH 2.21625 2.22000 -0.00375 9 MONTH 2.33500 2.32625 0.00875 12 MONTH 2.43000 2.41875 0.01125

Some Opening Comments December 15 2008

Monday, December 15th, 2008

Prices of Treasury coupon securities have posted modest losses in overseas trading as investors scout the landscape for signs of additional economic weakness and patiently await the outcome of the FOMC meeting tomorrow. Against that background, investors are less enthusiastic holders of risk averse assets and when the yield on ...

Closing Comments December 12 2008

Friday, December 12th, 2008

Prices of Treasury coupon securities seesawed today as conflicting forced tugged and pulled the market in different directions. The market opened with a firm bid as the Senate negotiations to bailout the automakers ended without success. Stocks continued under pressure and the economic data was largely as expected but supportive.The ...

MBS

Friday, December 12th, 2008

Mortgages opened much wider on heavy origination selling. They have erased those losses and are now 7 basis points to 8 basis points tighter to swaps. There has been buying by Asian investors, money managers and banks.

Hats Off to Madof

Friday, December 12th, 2008

I have to be very honest and announce that until yesterday I had never heard of Bernie Madof.  I have read bits and pieces of this story. How could someone steal however many billions that he stole without someone asking a question. Why was there no aggrieved customer? What is the ...

Swaps and Agencies

Friday, December 12th, 2008

Swap spreads are opening tighter, mostly. The 2 year spread is the exception as it is unchanged. Five year spreads and 10 year spreads are tighter by 2 basis points. Thirty year spreads continue to operate in the twilight zone and they have inverted 4 more basis points versus 30 ...

IG 11

Friday, December 12th, 2008

IG 11 is opening 269 1/2 / 271 1/2 which is 13 wider than the previous close.

Libor

Friday, December 12th, 2008

Libor US$ Fixing 12/11 12/10 Change OVERNIGHT .11875 .11500 0.00375 1 WEEK .36250 .39375 -0.03125 2 WEEKS .48750 .58125 -0.09375 1 MONTH 1.04000 1.19500 -0.15500 2 MONTH 1.68063 1.76750 -0.08687 3 MONTH 1.92125 1.99625 -0.07500 4 MONTH 2.02125 2.10000 -0.07875 5 MONTH 2.13375 2.22000 -0.08625 6 MONTH 2.22000 2.32250 -0.10250 9 MONTH 2.32625 2.43250 -0.10625 12 MONTH 2.41875 2.52875 -0.11000