Archive for March, 2009

Corporate Bonds

Thursday, March 26th, 2009

Corporate bonds have a nice heady tone about them today. One veteran salesman described the action as a delayed response to the improvement in the equity market this week.Credit spreads had never followed suit Industrial names and TMT are 5 basis points to 10 basis points better and financial names are ...

MBS and Swaps

Thursday, March 26th, 2009

Mortgages are opening unchanged to swaps. Originators have been selling 4 1/2s. The Federal Reserve has been a modest buyer. Asian accounts have been observed buying GNMAs. Money managers and hedge funds have been sellers of low coupons. Swap spreads are mixed.Two year spreads are a basis point wider at 59 1/2. Five year spreads ...

IG 12 and CDS

Thursday, March 26th, 2009

5yr Snr Bank CDS: BAC 325/335 (unch), CITI 555/565 (unch), JPM 175/185 (unch), WFC 240/250 (-5) - 5yr Snr Broker CDS: GS 270/280 (+5), MS 370/380 (unch) - CDS Index: IG12 178.5/180 (-2)

Addenda

Thursday, March 26th, 2009

There is quite a bit of Fedspeak today. Lockhart,Fisher,Lacker and Stern from the Fed will speak as will Geithner. I did see one report which noted that Geithner misspoke or was misinterpreted in a speech before the Council of Foreign Relations last night and he caused some severe short term turbulence ...

Bond Market Opening Comments March 26 2009

Thursday, March 26th, 2009

Prices of Treasury coupon securities have posted mixed results in overseas trading. The 2 year and 3 year maturity buckets are virtually unchanged while a malaise hangs over the longer maturities which face another round of supply today with the memory of yesterday's sloppy result fresh in the minds of ...

Bond Market Close March 25 2009

Wednesday, March 25th, 2009

Prices of Treasury coupon securities (for the most part) took a serious tumble today as the weight of supply proved too much for the market to digest.The 2 year note was an oasis of stability as its yield is unchanged at 0.95 percent. Then it turns ugly. The yield on ...

Corporate Bonds

Wednesday, March 25th, 2009

Secondary market paper is unchanged to about 5 basis points tighter. The level of activity from clients was subdued. Supply remains a bit of a bugaboo. Verizon priced a 10 year and a 30 year yesterday at 3 7/8 and this morning the deal was 400/395.  The 10 year deal has ...

Swaps and MBS

Wednesday, March 25th, 2009

Swaps are closing mixed. Two year spreads are wider by a basis point at 59. Three year spreads are tighter by 4 1/4 basis points at 52 1/2. Five year spreads are also 4 1/4 basis points tighter at 56 3/4. Seven year spreads have narrowed 4 1/2 basis points ...

Fed Buyback

Wednesday, March 25th, 2009

The Federal Reserve bought more bonds than participants had expected as they took down $ 7.5 billion bonds in the 7 year through 10 year sector. They were aggressive in terms of the par amount taken but when viewed against what was offered to them they left over $ 13 ...

Musical Interlude Revisited

Wednesday, March 25th, 2009

I posted this last evening and it has not garnered alot of traffic. I thought it was humorous so I am running it in the daylight hours. Give it a listen.