Archive for May, 2009

Miscellany

Monday, May 11th, 2009

Agency spreads are a basis point wider in the 2 year sector and 5 year sector. Ten year spreads are flat. Swap spreads are narrower across the curve. Two year spreads are one tighter at 44. Five year spreads are a basis point narrower at 49. Ten  year spreads are 1 ...

More Corporates

Monday, May 11th, 2009

Anheuser Busch just announced benchmark issuance in the 5 year and 10 year sector. So with Treasury out of the way it appears that corporate Treasurers plan a flood of issuance this week.

Corporate Supply

Monday, May 11th, 2009

Microsoft ( a Redmond Washington based software company) will be an active issuer of corporate bonds today. The company is offering benchmark size in 5 year, 10 year, and 30 year maturities. The talk is low 100s on all three tranches. One syndicate desk operative noted that the comp is AAA JNJ. He said ...

Buyback

Monday, May 11th, 2009

I failed to mention in my too lengthy opening that the Open Market Desk is buying August 2026 through February 2039 bonds today. I could never purchase  the 2039 bond. The actuarial charts show a very strong probability that by that date I will have shaken off these mortal coils so ...

IG 12 and Some CDS

Monday, May 11th, 2009

- 5yr Snr Bank CDS: BAC 183/193 (+3), CITI 345/365 (+5), JPM 115/125 (unch), WFC 135/145 (unch) - 5yr Snr Broker CDS: GS 168/178 (+5), MS 225/270 (+15) - CDS Index: IG12 146/147.5 (+4)

More on the Labor Market

Monday, May 11th, 2009

Here is a link to  New York Times story which expands on my labor market comments in my opening post. The story quotes Obama advisor Christine Romer as well as Clinton Labor Secretary Robert Reich on the level of GDP necessary to reverse unemployment. The story quotes Reich as stating that it ...

Bond Market Opening May 11 2009

Monday, May 11th, 2009

Prices of Treasury coupon securities are surging in overnight trading with yields on benchmark paper declining between 4 basis points and 5 basis points. There is no major economic event which motivates the price gains and I would surmise it is mostly the result of the salutary effects of the ...

Bond Market Close May 08 2009

Friday, May 8th, 2009

Prices of Treasury coupon securities are posting modest gains today as they rebound from the chamber of horrors created by the outsized offerings by the Treasury over the recent fortnight ( I don't think I have ever written that word before). I have heard of robust buying across the yield curve ...

Agency Bonds

Friday, May 8th, 2009

Agency spreads are 2 basis points to 3 basis points wider in the 2year through 5 year sector. Ten year paper is 3 basis points to 6 basis points wider. The Federal Reserve bought back $1.4 billion of long end agency paper this day. That amount was viewed as unenthusiastic by ...

Mortgages,Swaps and Some Vol

Friday, May 8th, 2009

Swap spreads are mostly wider today. Two year spreads are 2 1/4 basis points wider at 47 1/4. Three year spreads are 2 1/2 basis points wider at 49 3/4. Five year spreads are 1/2 basis point tighter at 49 3/4, also. Seven year spreads are 1/2 basis points wider ...