Archive for June, 2009

Position Update

Thursday, June 18th, 2009

I just exited my PST position. I bought 1000 PST yesterday at$ 57.30 and just sold at $ 58.45. The 10 year was 3.59ish when I bought and was nearly 3.74 when I sold. Spread product feels heavy and I think that being short for the supply is too easy a ...

Swap Spreads

Thursday, June 18th, 2009

Swap spreads are wider across the yield curve. Two year spreads are 2 basis points wider at 44. Five year spreads are 3 basis points wider at 41. Ten year spreads are 3 basis points wider at 23 and 30 year spreads are 3 basis points wider at NEGATIVE 23 1/2.

MBS

Thursday, June 18th, 2009

MBS are opening 5 ticks weaker to Treasuries ( I ususally quote versus swaps but do not have swap levels yet) as there was some chunky selling of MBS late in the afternoon yesterday. Dealers report that international accounts were sellers overnight, also, as those clients deemed it appropriate to ...

Some Selected Financial Name Corporate Bond Quotes

Thursday, June 18th, 2009

Bank America 5.65 2018 is opening at 385/375. It closed yesterday at 380/370. It opened Tuesday morning 365/355. JPM 4.65 2014 is 230/220 and closed at that level yesterday. It opened Tuesday morning at 220/215. Goldman 6 2014 are 250/240 and closed yesterday 245/235. The issue opened Tuesday morning 240/230. All quotes are ...

US Open Weather Report

Thursday, June 18th, 2009

I live about 3 miles from Bethpage State Park which is the site of the US Open this weekend.  It is gray and dark here and there is a hard rain a fallin'. I would not expect much golf today.

Libor

Thursday, June 18th, 2009

Libor only goes down. It set this morning at 0.60875 versus 0.61000 yesterday.

Bond Market Open June 18 2009

Thursday, June 18th, 2009

Prices of Treasury coupon securities are lower than they were when I wrote my closing post late yesterday but since I employ Bloomberg levels when I write this piece I will note that on that basis prices are virtually unchanged. The yield on the 2 year note is 1.15 percent. The ...

Bond Market Close June 17 2009

Wednesday, June 17th, 2009

Prices of Treasury coupon securities areregistering small gains today. The front end gained the most and the maturities are closing well off their best levels of the day. The yield on the 2year note has declined 3 basis points to 1.15 percent. The yield on the 3 year note dropped basis ...

Swaps,Mortgages and Some Vol

Wednesday, June 17th, 2009

Swap spreads are tighter across the curve. Mortgage clients, leveraged investors and exotic hedgers are largely responsible for the narrowing in spreads. Two year spreads are 1/4 basis point tighter at 42. Three year spreads are 1/2 basis point tighter at 44 1/4. Five year spreads are 2 3/4 basis points ...

Agency Market

Wednesday, June 17th, 2009

Agency spreads are mixed today. Two year spreads are a basis point tighter. Five  year spreads are a basis point wider and 10 year spreads are dramatically unchanged. Two year spreads are benefiting from the Bloomberg story which I linked to earlier today which related that Federal Reserve officials were discussing ...