Archive for April, 2009
Tuesday, April 7th, 2009
The Latin root of the English word frustration is frustra which means "in vain". Strategists at Greenwich Capital, a primary dealer, have experienced frustration lately as they have attempted to discern the quotidian movements of the bond market and they have found the exercise increasingly frustrating. Here is an interesting ...
Posted in Uncategorized | 10 Comments »
Tuesday, April 7th, 2009
Prices of Treasury coupon securities have rebounded in overnight trading as a series of weak economic numbers released overnight have tempered some of the enthusiasm for equities. In addition, well known investors George Soros and Marc Faber separately decried the level of the stock market and suggested that what we ...
Posted in Uncategorized | 1 Comment »
Monday, April 6th, 2009
Prices of Treasury coupon securities posted bifurcated results today.
The yield on the 2 year note edged lower by just about a basis point to 0.94 percent. The beneficent and salutary news ends there.
The yield on the 3 year note climbed 2 basis points to 1.34 percent. The yield on the ...
Posted in Uncategorized | 2 Comments »
Monday, April 6th, 2009
Corporate bond spreads remain firm as they were this morning when I reported on them. Industrial names are 3 basis points to 5 basis points narrower and bank and finance names remain 5 basis points tighter.
The Con Agra deal is the 'purest" corporate of that which is issued today. It ...
Posted in Uncategorized | 2 Comments »
Monday, April 6th, 2009
Swaps spreads are now wider across the curve this day. One derivative salesman noted that it is a bit of a relief trade and follows a period of spread narrowing.
There was quite a bit of paying by an eclectic group of clients today. Servicers, hedge funds, corporations and money managers ...
Posted in Uncategorized | Comments Off on MBS and Swaps
Monday, April 6th, 2009
Agency spreads are tighter across the curve today. Two year spreads are about a basis point tighter. Five year spreads are 3 basis points to 4 basis points tighter. Ten year spreads are narrower by 2 basis points to 3 basis points.
Retail activity was subdued. One trader ( and long ...
Posted in Uncategorized | Comments Off on Bond Market: Agency Spreads
Monday, April 6th, 2009
The Open Market Desk purchased $2.5 billion of coupons in the August 2019 through February 2026 maturity bucket. Once again the Desk concentrated its purchases in just a few issues. The largest purchases were in the 8 1/8 August 2019 ($1.1 billion); the 8 3/4 August 2020 ($ 417 million); ...
Posted in Uncategorized | Comments Off on Buyback
Monday, April 6th, 2009
Mortgages are about 3 ticks tighter to swaps today. Lower coupons are actually doing a little better today. The premiums will soon run out of steam,says one trader, as the prospect of getting repaid at 100 on prepayment mitigates the carry of the higher coupon.
Two year swap spreads are unchanged ...
Posted in Uncategorized | 1 Comment »
Monday, April 6th, 2009
Corporate bonds are opening with a firm tone in spite of the weakness in the equity market.
Industrial names are 3 basis points to 5 basis points tighter and bank and finance names are generally 5 basis points better.
The IG 12 which opened 185.5/ 187 is now 182/184.
There is a reasonable ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Monday, April 6th, 2009
Equities are opening with a display of weakness this morning. I do not see one specific reason for the weakness but can cite several factors which should weigh on sentiment in that market.
The Treasury has once again delayed full implementation of the PPIP program. That has some with whom I ...
Posted in Uncategorized | 4 Comments »