IG 11
Thursday, March 19th, 2009IG 11 is opening 1 1/2 tighter at 226/227.5. CDS on large banks are also tighter: JPM 5 tighter WFC 5 tighter C 15 tighter BAC 10 tighter
Archive for March, 2009
IG 11 is opening 1 1/2 tighter at 226/227.5. CDS on large banks are also tighter: JPM 5 tighter WFC 5 tighter C 15 tighter BAC 10 tighter
The Mighty Greenback
Thursday, March 19th, 2009The dollar took a pounding yesterday as the FOMC opened the monetary spigot full blast. I think the Euro appreciated nearly five cents which is a rare move indeed. I post some excerpts from an FX analyst who believes that the dollar will suffer the slings and arrows of outrageous ...
Bond Market Opening MArch 19 2009
Thursday, March 19th, 2009Prices of Treasury coupon securities are posting strange and mixed results in overnight trading. It appears that for the most part the market is taking a bit of a respite following the landmark move which the Bernanke Fed inspired with its made in the USA version of Quantitative Ease (QE). The ...
ICBM Redux
Wednesday, March 18th, 2009I titled an earlier piece ICBM Ben and received some correspondence from younger readers (I guess) who do not remember the Cold War and the missile gap. They were also not around for live launches of space capsules carrying human beings with names such as Yuri Gargarin or Alan Sheppard. So here ...
Bond Market,The Fed and QE
Wednesday, March 18th, 2009The Federal Reserve announced that they will purchase $300 billion of Treasury securities. They also noted that they will concentrate their purchases in the 2 year through 10 year sector. I think that within that framework they will concentrate purchases in the 2 year through 5 year sector. I am confident ...
MBS and Swaps
Wednesday, March 18th, 2009Mortgages are about in line with Treasuries today and did not benefit from the FOMC announcement that the Federal Reserve would buy an additional $750 billion of MBS. The issue here is dollar price. FNMA 4 1/2s is the most active coupon. It trades at 102 1/2. The FNMA 4s trade ...
Agency Bonds
Wednesday, March 18th, 2009Agency spreads are 6 basis points to 8 basis points tighter on the day. I spoke to participants at two smaller dealers and one very large dealer and each noted that client based activity has been light. One analyst noted that spreads had mostly been marked tighter and very little ...
TIPS
Wednesday, March 18th, 2009The breakeven spreads on 10 year and 30 year TIPS are exploding. That means they are predicting more inflation down the road. The breakeven spreads generally move glacially. In both the 30 year sector and the 10 year sector they have moved about 11 basis points today. That movement would be in ...
Bond Market :Corporate Bonds
Wednesday, March 18th, 2009The IG 11 is 228/230. That is about 9 basis points tighter than where it was at the open this morning. Secondary market bonds are unchanged to a tad wider. That is purely a function of directionality. When the market is racing the Treasury markets moves more quickly. The Fed is moving ...
Update
Wednesday, March 18th, 2009The Fed just announced that it will concentrate its purchases in the 2 year sector and the 10 year sector. That is why the bond is lagging so significantly.