Archive for June, 2009

Bond Market Close June 29 2009

Monday, June 29th, 2009

Prices of Treasury coupon securities posted solid gains today with the chunkiest gains in the longest maturities. The yield on the 2 year note declined just a basis point to 1.10 percent. The yield on the 3 year note declined 2 basis points to 1.60 percent. The yield on the 5 ...

Free Market At Work At the Ballpark

Monday, June 29th, 2009

Both New York major league baseball teams (to much fanfare) opened new stadiums this spring. Each spectacularly miscalculated and they have gotten caught in the vise of the global recession which they certainly did not calculate when they were planning several years ago. The New York Times ran this story over ...

Swaps MBS and VOL

Monday, June 29th, 2009

Swap spreads are wider across the curve.Two year spreads are 2 1/4 basis points wider at 37 3/4. Three year spreads are 2 1/2 basis points wider at 48 1/2. Five year spreads are 1 1/4 basis points wider at 38 1/4. Seven year spreads are 1 1/2 basis points ...

Corporate Bonds

Monday, June 29th, 2009

Let me offer a  story before I write on the corporate bond market. I drove my wife to the airport this morning (JFK ) as she is spending the week with the daughter and granddaughter. It is probably 20 miles to JFK from the global headquarters of Across the Curve and ...

Morning Micellany

Monday, June 29th, 2009

Mortgages are besting swaps by about three basis points this morning. Lower coupons are outperforming the rest of the stack. The three month 10 year ATM straddle is 666 bid this morning which is a tad below the mid market level I posted Friday. The Treasury market is about 16/32 higher in ...

Musical Interlude

Monday, June 29th, 2009

Now playing at Across the Curve global headquarters "Running on Empty " the 1977 classic by singer/songwriter Jackson Browne. He does an awesome cover of the Maurice Williams and the Zodiacs tune "Stay; which was previously covered by the Four Seasons in my youth.

IG 12 and Some CDS

Monday, June 29th, 2009

5yr Snr Bank CDS: BAC 230/240 (-5), CITI 425/440 (-8), JPM 107/117 (-5), WFC 155/165 (-7) - 5yr Snr Broker CDS: GS 153/163 (-4), MS 213/223 (-4) - CDS Index: IG12 135.5/137 (-4)

Bond Market Opening June 29 2009

Monday, June 29th, 2009

Prices of Treasury coupon securities are posting very small mixed changes in overseas trading. The yield on the 2 year note is unchanged at 1.11 percent and the yield on the 3 year note is unchanged at 1.62 percent. The yields on each of the other benchmark securities has declined 2 ...

Read My Lips

Sunday, June 28th, 2009

President Obama's senior advisor David Axelrod was on the Sunday talk show circuit and according to he "waffled" on the Obama campaign pledge that there would be no tax hike for those earning less than $ 250K per year. A tax hike is inevitable. It is only a matter of ...

Bond Market Close June 26 2009

Friday, June 26th, 2009

Prices of Treasury coupon securities continued their recent resurgence today  as persistent buying and some less than festive economic data fostereda bond positive attitude.. The data forced some who had hesitated to join the Friday fracas. There have been many agnostics regarding the recent surge in bond prices. Personal spending data ...