Archive for January, 2009

ABX

Thursday, January 8th, 2009

It has been some time since I have commented on the ABX.  The reason for the comment is that it appears that a bill to allow bankruptcy judges to alter loan balances has picked up a head of steam as Citibank broke ranks with other lenders and no longer opposes the ...

Closing Comments January 08 2009

Thursday, January 8th, 2009

Prices of Treasury coupon securities are closing the day with bifurcated results. The yield on the 2 year note has edged higher by 2 basis points to 0.83 percent. The yield on the 3 year note edged higher by 2 basis points also to 1.18 percent. The 5 year was ...

Corporate Bonds

Thursday, January 8th, 2009

Corporate bond spreads are unchanged today but the tone remains quite firm. There was one new issue a $1billion 10 year deal by Walgreens. The issue priced at T+ 287.The GE 30 year which priced the other day at 400 is 400 /395 and I will wager that the offerer ...

Agency Market

Thursday, January 8th, 2009

Agency spreads are tighter by three basis points in the 2 year sector and 4 basis points in the 5 year sector and 10 year sector.FNMA successfully offered $6billion 3 year reference notes which priced at T+83 basis points. Freddie Mac earlier in the week successfully priced 2 year and ...

Midday Miscellany

Thursday, January 8th, 2009

The Treasury will sell $16 billion of 10 year notes in about an hour. It is a lot of risk and represents the third round of bidding on this 10 year note. The issue size is over $52 billion and it will quickly and unceremoniously become an off the run ...

Swaps and MBS

Thursday, January 8th, 2009

Swap spreads are collapsing today. Two year spreads have narrowed by 8 ¼ basis points to 54 ¾. Three year spreads are tighter by 7 ½ basis points at 51 ¼. Five year spreads have narrowed 4 ¼ basis points to 46 basis points. Ten year spreads have narrowed 7 ...

Bank of England

Thursday, January 8th, 2009

Bank of England has reduced rates by 50 basis points to 1.50 percent.

Obama

Thursday, January 8th, 2009

President-elect Obama will provide details of his stimulus package in a speech in Virginia at 1100AM. The package is expected to total around $800 billion. The Congressional Budget Office projects a fiscal year deficit of $1.2 trillion. However, that figure does not include the loss of revenue and increased spending from ...

Etymological Note

Thursday, January 8th, 2009

I think this is interesting and hope you do,too. The English word Manufacture derives from Latin words facere and manus which literally mean to make by hand.

Some Opening Comments January 8th 2009

Thursday, January 8th, 2009

Prices of Treasury coupon securities are registering small mixed changes in overnight trading. Equity markets around the globe declined in sympathy with the steep drop in US stocks as well as in recognition of a welter of reports which indicate unabated global economic weakness.The yield on the 2 year note ...