Archive for May, 2009

More Miscellany

Thursday, May 14th, 2009

Agency spreads are unchanged across the curve. Two year swap spreads are unchanged are 42 and 5 year swap spreads are unchanged at 46 1/2. Ten year spreads are 1/2 basis point wider at 9 and 30 year spreads are a basis point wider at NEGATIVE 43. Walmart price talk is 1 ...

Walmart

Thursday, May 14th, 2009

Walmart just anounced $ 1billion of a 5 year note. i have not heard price guidance but imagine it will be steamy. It will be interesting to see how this deal progresses as the market feels on the soft side

MBS

Thursday, May 14th, 2009

Dealers report very heavy originator selling of  MBS. Spreads are lagging swaps by 2 basis points to 4 basis  points.

Miscellany

Thursday, May 14th, 2009

Real money is selling 5 1/2s and 6s and originators, as is their custom, are selling 4.5s. Consequently, mortgages are lagging out of the chutes this morning. The JPM 5 year which priced yesterday at 275 is ingesting pond water as it trades around 290 this morning. One participant suggests that the ...

Credit Market Open

Thursday, May 14th, 2009

- 5yr Snr Bank CDS: BAC 220/230 (+15), CITI 420/440 (+25), JPM 125/135 (+5), WFC 153/163 (+10) - 5yr Snr Broker CDS: GS 195/205 (+10), MS 290/300 (+10) - CDS Index: IG12 156/157.5 (+3.5)

Seasonals

Thursday, May 14th, 2009

David Ader of RBS Securities (the firm formerly known as Greenwich Capital) writes an excellent commentary each morning. This morning he presents some interesting data on the seasonality in the Treasury market. Here is the pertinent excerpt: In addition to the economic uncertainties illustrated by the recent data, we're reminding of ...

Position Update

Thursday, May 14th, 2009

I remain long 1000 shares of IEF which I purchased with the 10 year note at about 3.195 percent earlier this week. The 10 year currently yields about 3.10. Prior to the breakdown in Treasury prices to accomodate to the recent supply tsunami, the 10 year note supported in the 3.05/3.03 ...

Bond Market Open May 14 2009

Thursday, May 14th, 2009

Prices of Treasury coupon securities posted modest gains in in overseas trading. There does not seem to be a particular factor or news story motivating the gains. Perhaps it is the residue of the optimism which always ghoulish bond traders experienced with the weak retail sales report yesterday. And possibly ...

Bond Market Close May 13 2009

Wednesday, May 13th, 2009

Prices of Treasury coupon securities surged today in response to the weaker than expected retail sales number which altered the conventional wisdom regarding green  shoots and economic recovery. The bond market had probably overshot on the downside to accommodate all of the supply from the recent spate of Treasury issuance ...

Corporates and Agencies

Wednesday, May 13th, 2009

Corporate bonds spreads are about 5 basis points wider today as the weakness in retail sales and the attendant weakness in the equity markets motivate some to book profits following the recent rally. New deals activity was plentiful. JPMorgan priced $ 2.5 billion 5 year notes at a spread of 275 ...