Archive for April, 2009
Friday, April 17th, 2009
The Federal Reserve purchased a tad more than $ 3 billion agencies today from a total offered of about $ 5.7 billion.
One trader with whom I spoke characterized the operation as aggressive.
He noted that 10 year spreads were around 77 basis points prior to the announcement yesterday and narrowed to ...
Posted in Uncategorized | Comments Off on Buyback
Friday, April 17th, 2009
Swap spreads are wider across the curve this morning. Two year spreads are wider by a basis point at 58 1/2. Five year spreads have leaked 1 1/2 basis points to 59. Ten year spreads are one basis point wider at 16 1/4. Thirty year spreads are 2 basis points ...
Posted in Uncategorized | Comments Off on Miscellany
Friday, April 17th, 2009
Treasury bond and note prices are tumbling. Market participants cite several factors contributing to the sell off.
There was heavy origination selling late yesterday and that weighed on sentiment this morning.
There was also rate lock selling ahead of prospective corporate issuance. Some observers noted that Goldman Sachs sold $5billion of equity ...
Posted in Uncategorized | 4 Comments »
Friday, April 17th, 2009
- 5yr Snr Bank CDS: BAC 205/225 (-15), CITI 465/495 (-50), JPM 153/163 (-7), WFC 205/220 (-15)
- 5yr Snr Broker CDS: GS 190/200 (-5), MS 290/300 (-5)
- CDS Index: IG12 173.5/174.5 (+0.25)
Posted in Uncategorized | Comments Off on IG 12 and Some CDS
Friday, April 17th, 2009
RBS Securities (the firm formerly known as Greenwich Capital) publishes a daily market commentary. This morning Bond Market Strategist David Ader laments the boring trading range.
He offers some data on the volume of Treasury trading. According to Mr Ader trading volume in the Treasury market has declined by 1/2 from ...
Posted in Uncategorized | 3 Comments »
Friday, April 17th, 2009
A friend of the blog (DB) sent along this story on liquidation pricing in the market for steel plate. It is an interesting piece on catharsis in one distressed market.
US plate prices tumble as destocking efforts persist
2009-04-17 11:04:01.689 GMT
Significant destocking and pricing pressures continue in the US plate sector, as
many ...
Posted in Uncategorized | 3 Comments »
Friday, April 17th, 2009
Prices of Treasury coupon securities have exhibited minimal price changes in overnight trading. The Treasury market has been a boring backwater this week and I sense markets are setting up for a featureless Friday.
The yield on the 2 year note edged lower by a basis point to 0.89 percent. The ...
Posted in Uncategorized | Comments Off on Bond Market Open April 17 2009
Thursday, April 16th, 2009
Prices of Treasury coupon securities are slumping badly today as supply in other markets, fear of prospective Treasury supply and a rebounding appetite for risk products reduces the allure of Treasury debt.
JPMorgan priced $3billion of a new 10 year note at T+ 350 basis points. That was about 55 basis ...
Posted in Uncategorized | 2 Comments »
Thursday, April 16th, 2009
Agency spreads are unchanged in the 2 year and 5 year sectors and about 3 basis points tighter in the 10 year sector.
The Federal Reserve announced that it will purchase 2015 through 2030 paper tomorrow and that accounts for the firmness in the 10 year sector.
One trader with whom I ...
Posted in Uncategorized | Comments Off on Agency Bonds
Thursday, April 16th, 2009
The JPMorgan deal is still the highlight of the day in corporate bond land. I have not heard official talk but conversations lead to conclusion that the deal will price between 325 and 350 (basis points cheap to the 10 year Treasury).
It will probably price on the wide end of ...
Posted in Uncategorized | 5 Comments »