Archive for May, 2009
Monday, May 11th, 2009
I play chess on Monday evenings and I am having a little bout of insomnia tonight so I am doing some posting.
Tomorrow the Commerce Department will release the trade deficit for March. It had plunged sharply in March to $ 26 billion . The dismal scientists expect only a small ...
Posted in Uncategorized | Comments Off on Economic Data on May 12th 2009
Monday, May 11th, 2009
Treasury Inflation Protected Securities (TIPS) lagged nominal bonds in the rally today by 3 basis points in the 5 year sector and 5 basis points in the 10 year sector.
The breakeven spread in 5 years is 105 basis points and is 153 basis points in the 10 year sector.
One dealer ...
Posted in Uncategorized | Comments Off on TIPS
Monday, May 11th, 2009
Prices of Treasury coupon securities surged today as the market rebounded from the scolding it delivered the taxpayers for their profligate pace of issuance. The bond market also benefited from a buyback in the long end as well as spread widening in other investment grade sectors ( reported on quite ...
Posted in Uncategorized | 2 Comments »
Monday, May 11th, 2009
Corporate bond spreads are 5 basis points to 10 basis points wider today and the market has lost some of the fervor and conviction which has been so evident the last several weeks.
Heavy issuance mars the price action today. Microsoft is issuing $ 3.75 billion in 5s 10s and 30s. ...
Posted in Uncategorized | Comments Off on Bond Market: Corporate Bonds
Monday, May 11th, 2009
Agency spreads are 3 basis points to 5 basis points tighter across the curve.
There are several reasons for the underperformance.
FNMA will announce a new deal this week and dealers are clearing the deck in advance of it.
The Federal Reserve purchased the long end of the agency market on Friday and ...
Posted in Uncategorized | Comments Off on Bond Market: Agency Summary
Monday, May 11th, 2009
I am listening to some of the music of my youth at Across the Curve Corporate HQ today. I am currently listening to Sweetheart of the Rodeo by the Byrds.
The Byrds were a super group of the late 60s and one of their most innovative albums was Sweetheart of the ...
Posted in Uncategorized | 6 Comments »
Monday, May 11th, 2009
Mortgages have outperformed Treasuries this day,besting the 5 year by 1/8 point and the 10 year by 1/4 point as of this writing.
Originators have been light sellers only and one dealer cited the street as scrambling for bonds.
The up in coupon trade continues to work. One analyst noted that those ...
Posted in Uncategorized | Comments Off on MBS
Monday, May 11th, 2009
The Federal Government will need to borrow larger quantities of money than originally planned ,according to updated projections from the Obama Administration.
Posted in Uncategorized | 3 Comments »
Monday, May 11th, 2009
In agency market I have heard talk of a decent size seller of 7 year paper and smaller sellers of 3s,5s and off run 10s.
As I noted last week this week brings a supply announcement from FNMA. A consensus seems to be forming around a $ 4billion to $ 5billion ...
Posted in Uncategorized | Comments Off on Agency Debt
Monday, May 11th, 2009
Mortgages are trading very well this morning. The heavy servicer selling of last week has abated. High coupons trade very well as speeds have been slower than expected.
One source reports that FNMA 6s are outperforming the 10 year by 4 ticks.
Real money has been observed buying middle of stack coupons.
Posted in Uncategorized | Comments Off on MBS