Archive for April, 2009

IG 12 and Some CDS

Wednesday, April 8th, 2009

- 5yr Life Insurance CDS: GNW 45/47 (-7pts), HIG 10/12 (-8pts), LNC 36/38 (-9pts), MET 7/9 (-3.5pts), PRU 11/12 (-7pts) - 5yr Snr Bank CDS: BAC 330/345 (-5), CITI 5/6 (unch), JPM 182/192 (unch), WFC 290/300 (unch) - 5yr Snr Broker CDS: GS 245/260 (-5), MS 350/365 (-7) - CDS Index: IG12 185/186 ...

Irish Eyes Not Smiling

Wednesday, April 8th, 2009

Moody's cut rating on twelve Irish banks today.

Bond Market Open April 08 2009

Wednesday, April 8th, 2009

Prices of Treasury coupon securities have advanced in overseas trading as renewed concerns about the economy have weighed on sentiment in global equity markets. European markets have declined, on balance , about 1 percent. The Nikkei tumbled 2.6 percent and the Hang Seng slipped 3.0 percent. Early trading in the ...

Bond Market Close April 07 2009

Tuesday, April 7th, 2009

Prices of Treasury coupon securities are once again posting small mixed changes and bond prices are unaffected by the swirling currents in the equity markets nor the effect of additional treasury issuance over the remainder of this abbreviated trading week. The yield on the 2 year note slipped 2 basis points ...

Bond Market: Agency Spreads

Tuesday, April 7th, 2009

Agency spreads are unchanged in the 2 year sector and 1 basis point to 2 basis point tighter across the rest of the curve. The 2 year sector lagged a touch because FNMA announced a 2 year offering which will price tomorrow. The original price talk was low 60s. The deal ...

MBS and Swaps

Tuesday, April 7th, 2009

Swaps are wider across the curve this day. The two year spread widened 1/4 basis point to 59 3/4. The 5 year spread widened 2 basis points to 59 3/4 basis points. The 7 year spread has leaked wider by 2 1/4 basis points to 32 1/4. The ten year ...

TIPS

Tuesday, April 7th, 2009

At 100PM New York time the Treasury will auction $ 6billion of 10 year TIPS.  The issue uncharacteristically richened yesterday but it is taking an underwriting drubbing today. It has cheapened versus the nominal bond by about 10 basis point today. I think the issue will go well. Ten basis points ...

Change at Across the Curve: An Update

Tuesday, April 7th, 2009

I wrote several weeks ago that I would implement change at the blog. It was my intention to shift this into a subscription based service at a monthly fee of $25 per month. As you have been able to clearly observe, I have installed some Google ads and a Tipjar. I ...

MBS

Tuesday, April 7th, 2009

Mortgages are opening in line with Treasury debt this morning. The level of activity is rather light. Data made available yesterday indicates that speeds have not picked up as expected. This should give additional life to the up in coupon trade.

IG 12 and Some CDS

Tuesday, April 7th, 2009

- 5yr Snr Bank CDS: BAC 355/365 (+5), CITI 650/670 (+10), JPM 195/205 (+10), WFC 295/305 (+10) - 5yr Snr Broker CDS: GS 270/280 (+10), MS 365/375 (+5) - CDS Index: IG12 192/193.5 (+4)