Archive for May, 2009
Friday, May 15th, 2009
Bond prices are registering very small mixed changes in overnight trading. In that context,the long end has improves and shorter maturities are unchanged to marginally lower.
There is a raft of economic data today which will shape opinions regarding the green shoots.
The Federal Reserve Bank of New York will publish its ...
Posted in Uncategorized | Comments Off on Bond Market Opening May 15 2009
Friday, May 15th, 2009
I have back and neck issues. I will be a less aggressive blogger today.
Posted in Uncategorized | 8 Comments »
Friday, May 15th, 2009
Auto dealer closings. Over the next 30 to 60 days, Chrysler plans to cut 789 of its 3200 dealers; and, over a slightly longer period, GM plans to drop 2600 of its 6246 dealers (both according to the Wall Street Journal). The direct effects on employment if all these dealers ...
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Thursday, May 14th, 2009
There is no change. I am still long 1000 shares of IEF which I purchased when the 10 year note was at 3.195.
Posted in Uncategorized | 10 Comments »
Thursday, May 14th, 2009
My main source for color on volatility is busy today so I have no commentary. But the 3 month 10 year straddle which I promised to follow is 487 basis points which is down a tad from 494 yesterday.
And I posted earlier than mortgages were a tad weaker.
I just received ...
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Thursday, May 14th, 2009
Prices of Treasury coupon securities have meandered in a narrow range today and most issues are finishing the day with modest price gains.
The yield on the 2 year note slipped 2 basis points lower to 0.85 percent. The yield on the 3 year note dropped 2 basis points to 1.29 ...
Posted in Uncategorized | Comments Off on Bond Market Close May 14th 2009
Thursday, May 14th, 2009
Agency spreads are mixed today. Two year spreads are a basis point tighter at 31 basis points. Five year spreads are 3 basis points tighter at 54 and 10 year spreads are 2 basis points wider.
Spreads in the short end narrowed as the Open Market Desk conveyed the glad tidings ...
Posted in Uncategorized | Comments Off on Agency Market
Thursday, May 14th, 2009
Mortgages are lagging swaps by a tick or so today. One participant described it as noise. Some financial institutions have been sellers to print realized gains on the quarter end income statement. Originators have been sellers as is the custom of that group.
The Federal Reserve has been a buyer and ...
Posted in Uncategorized | Comments Off on MBS
Thursday, May 14th, 2009
It was an interesting day in corporate bond land. Early in the day the entire sector felt leaden. I recounted earlier the weakness in ATT paper. One source notes that at its worst levels ATT paper was 50 basis points to 60 basis points wider than levels which prevailed on ...
Posted in Uncategorized | 3 Comments »
Thursday, May 14th, 2009
Some analysts have chosen to discount the rise in initial claims this morning because it is mostly Chrysler workers and is a result of the bankruptcy. I do not understand the logical thought process here. They are unemployed workers and many will not return to work for a very long ...
Posted in Uncategorized | 6 Comments »