Archive for May, 2009
Wednesday, May 27th, 2009
The 30 year bond is the strongest issue on the curve today. The 10 year/30 year spread upon which which I heaped scorn earlier is trading at a recent narrow of about 93 basis points.
One bond trader and friend of the blog notes that yields close to 4 .5 percent ...
Posted in Uncategorized | 9 Comments »
Wednesday, May 27th, 2009
Swap spreads are mixed. Two year spreads are tighter by 4 basis points at 40. That is deceiving as it merely reflects the roll into the new 2 year note so after adjusting for the roll that spread is unchanged.
Five year spreads are unchanged at 49. Ten year spreads are ...
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Wednesday, May 27th, 2009
- 5yr Snr Bank CDS: BAC 150/160 (unch), CITI 340/355 (-5), JPM 93/103 (-2), WFC 115/125 (-2)
- 5yr Snr Broker CDS: GS 135/145 (-5), MS 227/237 (-3)
- CDS Index: IG12 144.5/146 (unch)
Posted in Uncategorized | Comments Off on IG 12 and Some CDS
Wednesday, May 27th, 2009
Here is a very interesting story from R euters ( and a hat tip to a loyal reader for forwarding via email) which delineates the negative effect on corporate bond spreads of the Obama Administration's obesiance to the union workers at Chrysler and GM.
Posted in Uncategorized | 3 Comments »
Wednesday, May 27th, 2009
I failed to mention earlier that the Federal Reserve will be purchasing the May 2012 through August 2018 sector today.
Metropolitan Life sold a benchmark seven year bond yesterday at T+ 375. I have seen an early quote of 370/360.
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Wednesday, May 27th, 2009
Three month Libor has set a basis point higher at 0.67375 versus 0.66375 yesterday.
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Wednesday, May 27th, 2009
Prices of Treasury coupon securities are registering marginal mixed changes in overnight trading. That is a somewhat disappointing outcome as I thought that the highest yields in six months would have elicited some measure of buying. Instead prices have barely budged from the extreme levels attained in late trading yesterday. ...
Posted in Uncategorized | Comments Off on Bond Market Open May 27 2009
Tuesday, May 26th, 2009
Prices of Treasury coupon securities are tumbling today and the longer the maturity of the issue the more painful the plunge.
The 2year note has suffered the least as its yield increased by 3 basis points to 0.92 basis points. The yield on the 3 year note climbed 8 basis points ...
Posted in Uncategorized | 13 Comments »
Tuesday, May 26th, 2009
Swap spreads have raced wider since last I discussed them several hours ago. Two year spreads are 3 1/2 basis points wider at 44 1/4. Five year spreads are 1 1/4 basis points wider at 49 1/4. Ten year spreads are 2 3/4 basis points wider at 17 3/4. Thirty ...
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Tuesday, May 26th, 2009
Corporate bond spreads are mostly unchanged today. The tone remains firm and customers are better buyers.One veteran salesman noted that spreads had recently galloped tighter and are now at levels at which improvement will be incremental and grinding. nevertheless, he does not want to be short as he thinks that ...
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