Archive for March, 2009
Wednesday, March 18th, 2009
Helicopter Ben is no longer the appropriate appellation for the Chairman of the Federal Reserve System. Under the tutelage of this former economics professor, Chairman Bernanke launched an ICBM into the market today and I will dub him ICBM Ben.
The Committee voted to expand the balance sheet of the Fed ...
Posted in Uncategorized | 9 Comments »
Wednesday, March 18th, 2009
The yield on the 10 year Treasury has dropped 5 basis points and rests at 2.95 percent.
I wrote yesterday that I did not believe that there is a large short base in the market. I believe that but the market is also very thin and rather illiquid. So I suspect ...
Posted in Uncategorized | 7 Comments »
Wednesday, March 18th, 2009
Mortgages are in line with swaps this morning. Client based flows thus far are minimal and reflect the desire of participants to ascertain the psyche of the FOMC before adding to positions.
In the corporate bond market bank and finance paper is unchanged and feeling as though it needs a respite ...
Posted in Uncategorized | Comments Off on Some Spread Stuff
Wednesday, March 18th, 2009
Yesterday the Federal Reserve released the result of an obscure quarterly survey (which in truth I had no idea existed) about the Terms of Business Lending. JPMorgan economist Michael Feroli had some interesting comments.
Today the Fed released the quarterly Survey of Terms of Business Lending. The data refer to Commercial ...
Posted in Uncategorized | 3 Comments »
Wednesday, March 18th, 2009
IG 11 is opening 2 basis points wider at 237.5/ 239.
CDS on major banks are unchanged to a tad wider. BOA is 5 wider,JPM is 2 wider and the Citi is unchanged.
CDS on Goldman and Morgan Stanley are unchanged.
Posted in Uncategorized | Comments Off on IG 11
Wednesday, March 18th, 2009
Prices of Treasury coupon securities barely budged in a woefully quiet session in advance of the FOMC announcement at 215PM New York time today. I anticipate that the New York session will produce a similarly quiescent result.
The yield on the 2 year note declined 2 basis points to 1.00 percent. ...
Posted in Uncategorized | 11 Comments »
Tuesday, March 17th, 2009
Prices of Treasury coupon securities are sagging today as a lethargic,listless and languid tone permeates the market. The level of activity is light as market participants await word from the FOMC as it concludes its latest conclave.
The yield on the 2 year note has climbed 3 basis points to 1.03 ...
Posted in Uncategorized | 2 Comments »
Tuesday, March 17th, 2009
The six year, ten year and thirty year tranches of Pfizer are bid about 25 basis points tighter than pricing spreads. I have no information on the three year tranche.
Posted in Uncategorized | 3 Comments »
Tuesday, March 17th, 2009
Swap spreads are wider by 1 1/2 basis points in the 2 year sector at 69 3/4. Five year spreads and 10 year spreads are also 1 1/2 basis points wider at 66 and 22 3/4, respectively. Thirty year spreads widened 2 1/2 basis points at NEGATIVE 33 1/2.
Mortgages have ...
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Tuesday, March 17th, 2009
Agency spreads leaked wider today and the 2 year sector took the biggest hit. Spreads in the 2year sector are 3 basis points to 5 basis points wider. Five year sector paper is 2 basis points wider and 10 year benchmarks are 3 basis points wider.
The FDIC extended the period ...
Posted in Uncategorized | Comments Off on Agency Update