Archive for June, 2009
Tuesday, June 16th, 2009
Real money was paying in swaps today as the market rallied. Speculators and mortgage folks were busy receiving.
Two year swap spreads widened 2 1/4 basis points to 42 1/2. Five year spreads narrowed 3/4 basis point to 40 3/4. Ten year spreads narrowed 1 3/4 basis points to 22 1/4. ...
Posted in Uncategorized | Comments Off on Swaps Mortgages and Vol
Tuesday, June 16th, 2009
Corporate bond spreads are unchanged in listless trading. As I have noted here many times those spreads have been on fire over the last several months. Conversations with market participants leads me to conclude that we are a junction where the market shall pause and digest the gains.
While we are ...
Posted in Uncategorized | Comments Off on Miscellany
Tuesday, June 16th, 2009
The Open Market Desk purchased $6.45 billion of securities from the $31.3 billion offered to them.
Of that total, nearly $6 billion was the new 3 year note upon which the ink from its printing is still wet.
I wonder how many of that issue the street offered in to the Desk.
When ...
Posted in Uncategorized | 3 Comments »
Tuesday, June 16th, 2009
Now playing at Across the Curve corporate headquarters Manassas which was a collaborative effort of Stephen Stills of Crosby Stills and Nash and Chris Hillman of the Byrds. It was published in 1972.
Posted in Uncategorized | Comments Off on Musical Interlude
Tuesday, June 16th, 2009
Mortgages are opening about 1 1/2 ticks better than swaps. Origination has been light and the Federal Reserve has been an active buyer.
Lately the down in coupon trade has been a super star. This morning there has been some reversal and profit taking and that has generated demand for the ...
Posted in Uncategorized | Comments Off on MBS
Tuesday, June 16th, 2009
The FT published a story this morning regarding an Obama Administration plan to overhaul the financial system which would force lenders to keep 5 percent of the credit risk of bundled securities. In this way securities firms would have "skin in the game" and would have less incentive to construct ...
Posted in Uncategorized | 13 Comments »
Tuesday, June 16th, 2009
Following the release of the "strong" (-345K strong?) labor report the futures market priced in Federal Reserve tightening by the end of this year. I do not think that will happen because I do not believe that the Federal Reserve will raise rates while the unemployment rate is rising. A ...
Posted in Uncategorized | Comments Off on Goldman Sachs on Timing of Federal Reserve Tightening Process
Tuesday, June 16th, 2009
Here are opening quotes from a dealer on selected financial names. Each issue is unchanged from the prior evening's close:
BAC 7 5/8 2019 370/360
C 8 1/2 2019 425/420
JPM 4.65 2016 220/215
WFC 5 3/4 2018 255/245.
Once again each issue is unchanged.
Posted in Uncategorized | Comments Off on Some Cash Market Corporate Bond Quotes
Tuesday, June 16th, 2009
Libor set lower once again today at 0.61313 after setting at 0.61438 yesterday.
Posted in Uncategorized | Comments Off on Libor
Tuesday, June 16th, 2009
Prices of Treasury coupon securities are posting mixed changes in overnight trading. Most benchmark issues are registering modest price declines with the exception of the Long Bond which is unchanged. The yield on that instrument is 4.56 percent.
The yield on the 2 year note increased 3 basis points to 1.25 ...
Posted in Uncategorized | Comments Off on Bond Market Open June 16 2009