Archive for March, 2009
Friday, March 13th, 2009
In the Treasury market the 2 year note has a robust bid and the curve is steepening. The 2year and the 5 year are outperforming the 10s and the 30s. I have actually heard of flows which run counter to that price action. Participants report sellers of the 7 year ...
Posted in Uncategorized | Comments Off on
Friday, March 13th, 2009
The tone of the corporate bond market continues to improve as the improvement in the equity markets these last few days whets risk taking appetites. Industrial names are a tad better and financials have improved by 5 basis points to 10 basis points.
Quality accounts have been observed stocking up on ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Friday, March 13th, 2009
The aforementioned index is opening one tighter at 233.5/235.
Posted in Uncategorized | Comments Off on IG 11
Friday, March 13th, 2009
Prices of Treasury coupon securities are suffering sharp losses in overseas trading as rebounding equities markets diminish the allure of risk free government bonds. More important ,the Pemier of China declared that he is worried about the safety of his Treasury holdings and made noises which should concern an already ...
Posted in Uncategorized | 16 Comments »
Thursday, March 12th, 2009
Agency spreads are closing mixed today. Two year spreads are 1/2 basis point wider. Five year spreads are one basis point tighter. Ten year spreads are 4 basis points wider.
FNMA sold $ 9billion 5 year notes today at a +90 spread. The issue is currently 89/88.5. It has failed to ...
Posted in Uncategorized | Comments Off on Bond Market: Agency Update
Thursday, March 12th, 2009
Prices of Treasury coupon securities posted modest gains today as a remarkable auction result capped three days and $63 billion of issuance by the Treasury. The yield on the 2 year note is a basis point tighter at 1.00 percent. The yield on the 3 year noted edged 3 basis ...
Posted in Uncategorized | 8 Comments »
Thursday, March 12th, 2009
MBS are unchanged to swaps. I did not hear of any major thematic trades today. Some were still agog over the trade late yesterday in which a servicer received for size in the belly of the swap curve and caused a hedging riot.
Swaps are tighter by 5 basis points in ...
Posted in Uncategorized | 2 Comments »
Thursday, March 12th, 2009
Corporate bond spreads in the secondary market are unchanged to about 10 basis points tighter. The improvement is in financials which have been ravaged of late. One participant thinks that the secondary market will narrow appreciably next week as the solid footing of the stock market will encourage some risk ...
Posted in Uncategorized | Comments Off on Bond Market: Corporate Bonds
Thursday, March 12th, 2009
Here is an interesting excerpt from a note JPMorgan economists sent to clients on the Federal Reserve Flow of Funds data for Q4. It describes in gorydetail the loss of wealth in the household sector.
The showstopper in today's report was the larger-than-expected $5.1 trillion decline in household net worth. The ...
Posted in Uncategorized | 3 Comments »
Thursday, March 12th, 2009
So much for supply being a problem. There were not enough bonds to go around and the auction stopped at 3.64 percent. One could have procured it around 3.68 percent in the cash market prior to the auction. So I guess we have a negative tail.
The reason for the spectacular ...
Posted in Uncategorized | 5 Comments »