Archive for February, 2009
Thursday, February 26th, 2009
I am publishing my close in two parts tonight.
The yield on the 2 year note edged higher by 2 basis points to 1.09 percent. The yield on the 3 year note increased 4 basis points to 1.49 percent. The yield on the 5 year note jumped 5 basis points to ...
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Thursday, February 26th, 2009
There has been some rather chunky issuance in corporate bond land today. Chevron has a $5billion deal in the works.It is comprised of a $1.5 billion 3 year note,a $2billion 5 year note and a $1.5 billion 10 year note. The price talk on each is T+ 195.
Oil companies, until ...
Posted in Uncategorized | 8 Comments »
Thursday, February 26th, 2009
In a previous posting I talked about the outperformance of high coupon MBS. A recent note from a dealer recounts that real investors are taking profits on those positions. A sizable chunk of 5 1/2, 6, and 6 1/2 coupons have come in for the bid. Additionally, origination selling has ...
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Thursday, February 26th, 2009
Mortgages are pretty much in sync with swaps today. The level of activity has been light. The street is still short the premium coupons as they trade quite well. One trader thought that the UIC trade had run its course and he expected that end user owners would take some ...
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Thursday, February 26th, 2009
The Treasury will complete this week's round of projectile vomitting with an auction of $22 billion 7 year notes. The issue still appears cheap on the curve and absolute yield levels are at the high end of the range.
The 7 year is still cheap on the curve, though not quite ...
Posted in Uncategorized | 3 Comments »
Thursday, February 26th, 2009
FNMA priced a mutant 2 year note today. It has to be the biggest agency deal ever. They offered $15billion which priced T+70 basis points. The issue is currently 66 bid.
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Thursday, February 26th, 2009
The economic data this morning in the form of durable goods and initial claims were an unmitigated disaster.
Deutsche Bank sees current quartet GDP at -6.5 percent and makes assertion that while it is not likely one can make a case for -10 percent.
Morgan Stanley has revised its forecast to ...
Posted in Uncategorized | 31 Comments »
Thursday, February 26th, 2009
Prices of Treasury coupon securities continued their steady descent in overnight trading. European equity markets are posting solid gains and futures markets point to a robust opening for equities in the US. Fears regarding the nationalization of the banking system have faded and the rebound from multi year lows in ...
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Wednesday, February 25th, 2009
The WSJ reports that the Obama Administration plans to fund universal health care by limiting the tax deductions of taxpayers in the upper brackets. In the real world that is identical to raising taxes.
Posted in Uncategorized | 25 Comments »
Wednesday, February 25th, 2009
Prices of Treasury coupon securities tumbled today as investors drowned themselves in the spittle of never ending Treasury issuance. From the perspective of bond traders the recovery in the stock market added to the woes of the fixed income markets. We are approaching a junction at which fundamental economic data ...
Posted in Uncategorized | 7 Comments »