Archive for January, 2009

Head and Shoulder Formation

Wednesday, January 28th, 2009

Someone set me this regarding a possible bullish trade in equities: Not that I am a big gap/head & shoulders kind of person, but this has some ugly implications for all of this months sellers of S&P's. Amazingly, the attached chart of the daily S&P is posting a massive head & shoulders island bottom ...

Closing Comments January 28 2009

Wednesday, January 28th, 2009

Prices of Treasury coupon securities took a shellacking this afternoon in the aftermath of the FOMC statement at the conclusion of its meeting. Coversations with market participants yield twis a theme of disappointment and angst over impending supply. As the greatest risk on the supply front is in the long ...

Corporate Bonds

Wednesday, January 28th, 2009

Generic corporate bonds are about 5 basis points tighter today as the sector responds to the god news of a possible bad bank construct which would isolate the weight problems curently populating financial firm balance sheets. Financial company paper has responded accordingly ad JPMorgan and Bof A 10 year paper is ...

FOMC Statement

Wednesday, January 28th, 2009

The FOMC issued its statement moments ago. They remain very concerned about the condition of the economy and about tight credit conditions. They are concerned that inflation will slip into recession. They reiterated that they are prepared to buy long maturity Treasuries and that they would intensify their purchases of ...

MBS

Wednesday, January 28th, 2009

Mortgages are 4basis points to 5 basis points tighter to the 5 year. There has been solid buying by an eclectic group of real investors this morning.

Libor Chart

Wednesday, January 28th, 2009

Libor US$ Fixing                 1/28         1/27      ChangeOVERNIGHT     0.22375      0.22000     0.003751 WEEK        0.30875      0.31750    -0.008752 WEEKS       0.35750      0.36500    -0.007501 MONTH       0.40938      0.41125    -0.001872 MONTH       0.90563    ...

IG 11

Wednesday, January 28th, 2009

IG 11 is opening 8 tighter at 190/192.

Some Overnight News

Wednesday, January 28th, 2009

This Apple computer I am using to write while I am in chilly Evanston, Illinois has not permited me to create paragraphs when I write. So you have ben bombarded with some very long and tedious looking opening and closing posts. Rather than make today's opening interminably long and difficult ...

Some Opening Comments for January 28 2009

Wednesday, January 28th, 2009

Prices of Treasury coupon securities are virtually unchanged in overnight trading as paralysis grips fixed income participants in advance of the conclusion of the FOMC meting and the pithy and portentous proclamation which accompanies the meeting's end. That statement will outline the results of the meeting and the near term ...

Tuesday, January 27th, 2009

Prices of Treasury coupon securities surged today as the market heaved a collective sigh of relief today at the successful conclusion of the auction of $40 billion of 2 year notes. There will be a one day hiatus for the FOMC announcement tomorrow and then the Treasury will return to ...