Archive for February, 2009
Friday, February 20th, 2009
The KBW index of bank stocks touched a 17 year low yesterday. Citibank and B of A each dropped 14 percent on the day. Citi stock is trading at $2.51 and B of A at$ 3.93. I guess the market is anticipating that those fallen angels will quickly be folded ...
Posted in Uncategorized | 6 Comments »
Friday, February 20th, 2009
Prices of Treasury coupon securities have posted robust gains in overnight trading as equity markets around the globe print both chunky losses and multi year lows. Most European exchanges are down about 3 percent. The Nikkei declined 1.87 percent. The Hank Seng fell 2.5 percent and the Aussie index declined ...
Posted in Uncategorized | 5 Comments »
Thursday, February 19th, 2009
Prices of Treasury coupon securities tumbled today as the weight of supply humbled any bullish sentiment which a series of bad for the economy pieces of the economic puzzle generated. The market faces a very interesting dynamic. The economy continues to deteriorate and the government can not mix some elixir ...
Posted in Uncategorized | 3 Comments »
Thursday, February 19th, 2009
Agency spreads are one basis point to three basis points tighter across the curve.
The Federal Reserve purchased $2.5 billion of securities today in the 4 year through 8 year sector.
One trader noted that some of his brethren are now in a mode in which they do not wish to ...
Posted in Uncategorized | Comments Off on Agency Market
Thursday, February 19th, 2009
Corporate bonds have a better tone about them today than they did yesterday when my correspondent sounded as though he was preparing to slit his wrists.
The focus of the market yesterday was the $16 billion Roche deal. The issue has tightened substantially since pricing. The 3 year tranche priced at ...
Posted in Uncategorized | Comments Off on Bond Market: Corporates
Thursday, February 19th, 2009
JPMorgan economists have examined the entrail of the claims report and suggest that the next employment report could show that companies shed more than 600K workers this month. Here is the full note:
Initial jobless claims were 627,000 in the week ending February 14, and
claims in the prior week were also ...
Posted in Uncategorized | 3 Comments »
Thursday, February 19th, 2009
Mortgages are opening about 2 ticks weaker to swaps. Originator selling has been heavy and real retail and the Federal Reserve has been absent on the buy side.
Lower prices has swept in with it some fear of extensions and the forced selling associated with that.
One dealer noted that mortgage servicers ...
Posted in Uncategorized | Comments Off on Bond Market Miscellany
Thursday, February 19th, 2009
* Both headline PPI and core PPI rose more than expected in January. Headline PPI rose 0.8% (consensus +0.3%), but this mainly reflected a 15% increase in the gasoline PPI, after massive declines in previous months. Headline PPI excluding gasoline rose 0.2%, with finished foods (-0.4%) down for the second ...
Posted in Uncategorized | Comments Off on HSBC on PPI
Thursday, February 19th, 2009
Libor US$ Fixing
2/19 2/18 Change
OVERNIGHT 0.29375 0.30438 -0.01063
1 WEEK 0.37000 0.36625 0.00375
2 WEEKS 0.41625 0.41188 0.00437
1 MONTH 0.47313 0.47000 0.00313
2 MONTH 0.95000 ...
Posted in Uncategorized | Comments Off on Libor
Thursday, February 19th, 2009
There was a plethora of economic data overnight.
Moodys will review the ratings of Australian banks as that county finds itself in recession. Moodys is the entity which heard no evel and saw no evil as Wall Street cranked out bonds backed by subprime mortgages.
Bank of Japan will buy nearly $ ...
Posted in Uncategorized | Comments Off on