Archive for March, 2009
Monday, March 16th, 2009
The corporate bond market maintains a firm tone late in the session. CDS on Citibank, BOA and JPM are tighter by 30 basis points, 20 basis points and 25 basis points respectively.
The focus of the day is the Pfizer deal. ( One analyst with a great sense of humor wrote ...
Posted in Uncategorized | 3 Comments »
Monday, March 16th, 2009
Agency spreads are mixed today in a session in which most retail investors were somnolent. I say most because the Federal Reserve was active and bought nearly $4.5 billion of agency debt in the 2013 through 2015 sector.
Two year sector spreads are wider by 2 basis points. Five year sector ...
Posted in Uncategorized | Comments Off on Bond Market Update: Agency Market
Monday, March 16th, 2009
Swap spreads are tighter across the curve.
Two year spreads are better by 1 3/4 basis points at 68. Five year spreads have narrowed 1 3/4 basis points to 62 1/2. Ten year spreads have narrowed 1 3/4 basis points to 21 1/2. Thirty year spreads tightened (like a noose) 2 ...
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Monday, March 16th, 2009
I have not yet seen price talk on the multi tranche Pfizer deal. One veteran salesman (and friend of the blog) thinks that it will price between 300 and 350 basis points cheap to Treasury benchmarks. This is a AA2/AAA company with very little debt. They are acquiring Wyeth which ...
Posted in Uncategorized | 4 Comments »
Monday, March 16th, 2009
The headline should read Industrial Destruction or possible Industrial Non Production. IP fell 1.4 percent in February. It has declined 11.2 percent from year ago levels. The sickly auto industry actually boosted the number.
Capacity utilization dropped to 70.9 percent. That is 10 points below the 1972 through 2008 average and ...
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Monday, March 16th, 2009
IG 11 opened 4.5 tighter at 228.5/ 230.
Posted in Uncategorized | 4 Comments »
Monday, March 16th, 2009
I am not a maven of the TIC data and will await the Brad Setser report but unless there is some mitigating factor, this report seems pretty gloomy.
One line: Net foreign private flows were -$158 billion. Once again I do not know the technicals of this one and will await ...
Posted in Uncategorized | 5 Comments »
Monday, March 16th, 2009
The Empire survey of New York District manufacturing was a much weaker than consensus -38.2 It was also the weakest print in the relatively short history of the index (2001).
The weak data has not staunched the flow of selling in the Treasury market. As we speak the yield on the ...
Posted in Uncategorized | Comments Off on Monday Morning Miscellany
Monday, March 16th, 2009
Across the Curve
March 16th, 2009 7:44 am | by John Jansen |
Prices of Treasury coupon securities have tumbled in overseas trading as equity markets around the globe continue their rise from the depths of despair with robust gains around the globe. A statement buy Barclays Bank that it is ...
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Friday, March 13th, 2009
I am leaving early today for a trip to beautiful Charlottesville, Virginia. If you look at my blogroll you will note an entry for the Charlottesville Ballet. My daughter is a co founder of that group and I am leaving the corporate headquarters early to watch the company perform.
If you ...
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