Archive for April, 2009

MBS

Friday, April 24th, 2009

An unsexy opening for mortgages. Most issues are within a tick of 300PM levels. There is the customary two way flow with originators selling and money managers buying. Mortgages are about a basis point tighter to Treasuries and unchanged versus swaps in early trading.

Credit Market Opening

Friday, April 24th, 2009

- 5yr Snr Bank CDS: BAC 275/285 (+3), CITI 565/585 (unch), JPM 163/173 (unch), WFC 230/240 (unch) - 5yr Snr Broker CDS: GS 235/245 (-2), MS 355/370 (unch) - CDS Index: IG12 176.5/178.5 (-2.5)

Counterpoint

Friday, April 24th, 2009

In my opening post I posited a most uneventful Friday. Analysts at RBS Securities ( the firm formerly known as Greenwich Capital offer an interesting perspective this morning in their daily missive. They note that each Friday since the Federal Reserve announcement of Quantitative Ease that the yield on the ...

Bond Market Open April 24 2009

Friday, April 24th, 2009

Prices of Treasury coupon securities are virtually unchanged in overnight trading. Indeed, they are so unchanged that I will post the yields but ignore the less than a basis point change in each issue. That early result does not bode well as at least here in New York the last ...

UK Debt Rating Under Review

Thursday, April 23rd, 2009

The Daily Telegraph in the UK reports that the countrrry's AAA credit rating is in some jeopardy as the government forecasts red ink quite a distance into the future. For some reason I can not get the link to the Telegraph work. Here is the Bloomberg story on the topic. U.K. May ...

Bond Market Close April 23 2009

Thursday, April 23rd, 2009

Prices of Treasury coupon securities are finishing the day,on balance with modest declines in yields. Yields tested the back end of the range this morning as the 10 year note traded as deep as 2.97 percent.The 2year/10 year spread remains at the wide end of its range near 200 basis ...

Bond Market: Agency Close

Thursday, April 23rd, 2009

Agency spreads are a basis point tighter in the 2 year sector and 2 basis points better in the 5 year sector. Ten year spreads are unchanged to a tad wider. There has been robust buying of the product and issuance has declined. Dealers report that one year and shorter paper ...

MBS and Swaps and Some Vol

Thursday, April 23rd, 2009

Mortgages are unchanged to maybe a tick better versus swaps. Swap spreads are mostly narrower but they have retreated somewhat from the better levels which I reported in and earlier post. Two year spreads are unchanged at 62 1/4. Five year spreads are narrower by 1 3/4 basis points at 62 1/4. ...

Agencies and Swaps

Thursday, April 23rd, 2009

Agency spreads are unchanged in the 2 year sector and in the 5 year sector. Ten year spreads are a basis point wider. Freddie Mac will price sometime today the 5 year note which they postponed yesterday because of the death of a senior corporate official. The price talk is T+65 ...

Buyback

Thursday, April 23rd, 2009

The Federal Reserve purchased $ 7billion of paper in the 3 year and 4 year sector this morning. http://www.newyorkfed.org/markets/pomo/display/index.cfm