Archive for February, 2009
Thursday, February 19th, 2009
Prices of Treasury coupon securities posted mixed results in overseas trading. The yields on the 2 year note and the 3 year note are unchanged at 0.95 percent and 1.33 percent, respectively. Other benchmark issues have seen yields post modest gains. The yield on the 5 year note has edged ...
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Wednesday, February 18th, 2009
Prices of Treasury coupon securities slumped today and gave back chunks of the gains they achieved yesterday. Several factors contributed to the sell off.
The Treasury will announce a huge refinancing tomorrow. The consensus seems to be that they will offer $42 billion 2 year notes, $32 billion 5 year ...
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Wednesday, February 18th, 2009
Mortgages are about 8 basis points to 9 basis points tighter to Treasuries. Swaps are tighter by 4 basis points to 5 basis points.
In the immediate wake of the Obama Administration announcement of the homeowner rescue high coupons took a clubbing, hedge funds, money managers and originators were all ...
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Wednesday, February 18th, 2009
The corporate bond market has a rather merdurinous feel about it today. One veteran salesman and friend of the blog notes the difficulty in selling some of the plethora of new issues.
Here is some of the evidence.
DuPont sold 10 year bonds yesterday at T+ 312 basis points. That bond ...
Posted in Uncategorized | 6 Comments »
Wednesday, February 18th, 2009
A loyal reader passes along this article from the FT which describes some incipient problems in the "covered" bond market in Germany.
Posted in Uncategorized | 5 Comments »
Wednesday, February 18th, 2009
The Obama Administration announced their plan to help homeowners facing the threat of foreclosure and it bears the Orwellian title Homeowner Affordability and Stability Plan.
In a nutshell the market reaction has been to clobber the high coupons. One trader noted that the market had made a bet that those with ...
Posted in Uncategorized | Comments Off on MBS
Wednesday, February 18th, 2009
This is the note which HSBC sent out to clients on the Housing Starts Data. There is no recovery or stability brewing in housing market.
* Housing starts continue to decline steeply, falling 17% in January to a new all-time low (back to 1959) of 466k (consensus 529k)
* Starts are down ...
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Wednesday, February 18th, 2009
Mortgages are opening about 1/32 tighter to swaps this morning. One dealer notes that international clients were rather reticent last night and support for the market this morning has been provided by real money in the States.
Origination selling should limit the upside in the short run.
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Wednesday, February 18th, 2009
I mentioned in my opening that UBS economists took some solace from the fact that a poor housing starts number would have the beneficial effect of speeding the reduction in inventories. That process will eventually lead to stability in prices.
Well what they wished for came to pass as the housing ...
Posted in Uncategorized | 3 Comments »
Wednesday, February 18th, 2009
Prices of Treasury coupon securities have registered mixed results in overnight trading. The yield on the 2 year note is unchanged at 0.87 percent. The yield on the 3 year note edged lower by a basis point to 1.20 percent. The yield on the 5 year note slipped by a ...
Posted in Uncategorized | Comments Off on Bond Market Opening Feb 18 2009