Musical Interlude
Thursday, June 25th, 2009Here is a classic from Ray Charles. Modern Sounds in Country and Western Music recorded in 1962 but timeless and a great listen 47 years later.
Archive for June, 2009
Here is a classic from Ray Charles. Modern Sounds in Country and Western Music recorded in 1962 but timeless and a great listen 47 years later.
Corporates and Agencies
Thursday, June 25th, 2009Corporate bond spreads are unchanged as someone pressed the pause button for the corporate bond market. One veteran salesman and steadfast friend of the blog opines that the market is treading water. He notes that at the moment bid wanted requests outweigh offers wanted. Very little is trading on either side ...
Swaps MBS and VOL
Thursday, June 25th, 2009Vol is higher today as vol becomes very directional. The market has broken out of the recent range and that has brought demand from hedger. One salesman noted increased interest in low strike receivers. The three month/ten year ATM swaption straddle trades at 668. Swap spreads are narrower across the curve.Convexity ...
Seven Year Itch
Thursday, June 25th, 2009The seven year note auction was another very robust bidding event. Indirect bidders (about whom I am tired of writing ) took 66 percent of the auction. The auction averaged one basis point through the level at which bonds were trading in the market. The yield which cleared the market was 3.329 ...
MBS
Thursday, June 25th, 2009Mortgages are about 4 ticks tighter to swaps. Money managers, servicers ,Asian investors and other domestic end users are all buyers. There has been modest selling only from originators. High coupons have outperformed in the uptrade.
Indirect Bidding Revisited
Thursday, June 25th, 2009The new process is really an accounting change and will give a more precise measure of ALL customer interest. Previously many dealers would bid for customers with a direct bid and then sell that award to the client. The bid was not the dealers and the dealer had no risk in ...
Swiss Intervention
Thursday, June 25th, 2009The Swiss National Bank intervened in the currency market yesterday and again this morning. I will confess I have not followed the story but here is the take of Brown Brothers on the action: The Swiss National Bank has turned more aggressive in its intervention and it appears they have followed ...
Bond Market Open June 25 2009 (Six Months to Christmas)
Thursday, June 25th, 2009Prices of Treasury coupon securities are posting very modest gains in overnight trading. As I peruse the news there does not appear to be any story guiding prices higher. There is residual discussion of the US durable goods report and conversations about the FOMC statement but there is no real ...
Indirect Bidding
Wednesday, June 24th, 2009Apparently the Treasury changed reporting requirements for dealers when they submit bids on behalf of customers. I posted an article about this earlier. I think I found the relevant regulation at the Treasury website. Here it is and I will explain in another post: III. Guaranteed Bids The UOC ...