Archive for April, 2009
Friday, April 3rd, 2009
Mortgages were 2 ticks to 3 ticks tighter to swaps in the aftermath of the labor report.
The 4s and 4 1/2s were lagging as has been their custom of late.
FNMA 6s in the words of one participant were "defying gravity" and trade well in any environment.
The level of activity was ...
Posted in Uncategorized | Comments Off on MBS
Friday, April 3rd, 2009
The labor report shows no evidence that the weakness in the labor market is abating. I will spare you the headlines and note some of the entrails of the report.
The Employment/Population ration is 59.9 percent. Economists at HSBC point out that the ratio has not been that low since July ...
Posted in Uncategorized | 1 Comment »
Friday, April 3rd, 2009
- 5yr Snr Bank CDS: BAC 350/360 (+5), CITI 625/640 (+5), JPM 185/195 (+5), WFC 275/285 (+10)
- 5yr Snr Broker CDS: GS 265/275 (unch), MS 360/375 (unch)
- CDS Index: IG12 193.5/195 (-3.5), HVOL12 442/452 (-8)
Posted in Uncategorized | Comments Off on IG 12 and Some CDS
Friday, April 3rd, 2009
Prices of Treasury coupon securities have sagged in overnight trading as the aura of optimism which has recently swept the markets(with deleterious effect on bond prices) continues overnight. While participants have a steady focus on the non farm payroll data this morning ,there were other so called green shoots of ...
Posted in Uncategorized | 7 Comments »
Thursday, April 2nd, 2009
Corporate Bond spreads as measured by the IG 12 are about 7 basis points tighter. There has been robust buying in the cash market and that market maintains a very firm tone.
Pristine retailer TJMax issued issued $375 million of bonds today at T+400 and that deal is 25 basis points ...
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Thursday, April 2nd, 2009
Prices of Treasury coupon securities are tumbling as a surging stock market diminishes the safe haven allure of government bonds.
Markets are strange and ambiguous animals. It is often difficult to discern its signals and often times it is is manic depressive. I think the way to view the markets is ...
Posted in Uncategorized | 4 Comments »
Thursday, April 2nd, 2009
Swap spreads are mixed today. Two year spreads are unchanged at 57 and 5 year spreads are unchanged at 56 1/2. Seven year spreads are tighter by 1 3/4 basis points at 30. Ten year spreads narrowed 1 1/2 basis points to 19 1/4. Thirty year spreads are 1 1/2 ...
Posted in Uncategorized | Comments Off on Swaps and MBS
Thursday, April 2nd, 2009
The Federal Reserve is busy monetizing the debt. They bought about $ 7.5 billion of securities out of the $ 26.252 billion offered to them. The overwhelming portion of the purchase was concentrated in two issues: the 1 3/4 March 31 2014 (current 5 year $ 4.35 billion) and the ...
Posted in Uncategorized | 14 Comments »
Thursday, April 2nd, 2009
In a few minutes the Treasury will announce that it plans to auction a 10 year TIPS bond on Tuesday. One analyst with whom I converse expects a total of $ 8 billion.
Next Monday Treasury will announce 3 year notes and 10 year notes for auction on Wednesday and Thursday,respectively. ...
Posted in Uncategorized | Comments Off on Supply
Thursday, April 2nd, 2009
Here is an excellent website for following the schedule of Treasury issuance. It is tentative but I find that they ahere to it nearly 100 percent of time. It gives announcement dates and auction dates for pretty much everything the Treasury issues.
Posted in Uncategorized | Comments Off on Treasury Website