Archive for March, 2009
Friday, March 20th, 2009
Here is an interesting piece from the Atlanta Fed blog on recessions, job losses and recovery. Job losses in this recession particularly steep relative to recent recessions. The author concludes on the rather gloomy note that if the recovery from this recession follows the path of the recessions of the ...
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Friday, March 20th, 2009
Prices of Treasury coupon securities have rebounded following the bout of profit taking which plagued the market yesterday. Investors experienced a bit of an epiphany and concluded that the size and scope of the FOMC intervention in the bond market would be supportive of bond prices , at least in ...
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Thursday, March 19th, 2009
Corporate bonds as measured by the IG 11 exhibited very little movement today as the index is closing near levels at which it opened this morning, 228/230.
Secondary market paper was retreated from the best levels of the day. Bank and finance paper which had been better by 10 basis points ...
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Thursday, March 19th, 2009
Prices of Treasury coupon securities slumped today following the historic rally yesterday as the FOMC announced plans to buy $ 1.150 trillion of fixed income product. There was some natural profit taking today after a mini interest rate cycle yesterday as the yield on the 10 year note dipped a ...
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Thursday, March 19th, 2009
Mortgages (FNMA 4 1/2s) are about 6 ticks tighter to swaps. Performance is worse as one marches up the coupon stack.It was a very active day and participants report active participation by money managers, hedge funds and international accounts. Most were better buyers.
Swaps are tighter across the curve. Two year ...
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Thursday, March 19th, 2009
Agency spreads are 2 basis points to 3 basis points tighter today. Investors have been better buyers and there has been a reasonable amount of buying from central banks.
One traded offered an interesting chronology which extends back several weeks.
He noted that agency spreads had widened about 20 basis points this ...
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Thursday, March 19th, 2009
According to an internet based Bloomberg page the yield on the 10 year TIPS has declined 10 basis points to 1.21 percent. The yield on the nominal 10 year note has edged lower by about 3 basis points.
I think the TIPS outperformed by about 10 basis yesterday so that makes ...
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Thursday, March 19th, 2009
Corporate bond spreads are unchanged to a tad wider in industrial names as well as TMT names. Bank and finance paper is 10 basis points tighter.
The level of activity which I have noted thus far is light. I think that there is an evolving consensus that Open Market Desk purchases ...
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Thursday, March 19th, 2009
Benchmark Treasury bond yields continue to decline after a round of equivocation overnight.
On balance,dealers report much better buying from an eclectic group of investors.
Fast money types and central banks have been chunky buyers in the 5year through 7 year region. There has been better buying in the long end by ...
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Thursday, March 19th, 2009
Mortgages are opening 8 basis points to 9 basis points tighter to the 5 year Treasury with swaps unchanged.
Originators should be substantial sellers once the market settles down and, absent the Fed, those sales will cheapen the market.
Domestic banks are better sellers.
Japanese accounts have been hibernating into year end.
Non -Japan ...
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