Archive for June, 2009

Swap Spreads

Wednesday, June 24th, 2009

Swap spreads are opening one basis point wider across the curve. Two year spreads (roll adjusted) are one basis point wider at 41 1/2. Five year spreads are 43 and ten year spreads are 26 1/2. Thirty year spreads are NEGATIVE 12.

Libor

Wednesday, June 24th, 2009

Libor opened at 0.60438 today versus 0.60475 yesterday.

IG 12 and Some CDS

Wednesday, June 24th, 2009

- 5yr Snr Bank CDS: BAC 250/260 (-2), CITI 453/468 (-2), JPM 111/116 (-2), WFC 165/175 (-2) - 5yr Snr Broker CDS: GS 160/170 (-3), MS 222/232 (-3) - CDS Index: IG12 140.5/142 (-4)

Bond Market Open June 24 2009

Wednesday, June 24th, 2009

Prices of Treasury coupon securities, on balance, have moved lower in overnight trading. The 2 year note is the exception and it is unchanged. All other benchmark issues are lower in price. The price changes are small as investors around the globe focus on the statement which will flow from ...

Bond Market Close June 23 2009

Tuesday, June 23rd, 2009

Prices of Treasury coupon securities surged today with the largest gains in the longer maturity issues. The yield on the 2 year note declined 3 basis points to 1.10. The yield on the 3 year note declined 2 basis points to 1.72 percent. The yield on the 5 year note edged ...

MBS,Swaps and Vol

Tuesday, June 23rd, 2009

Swap spreads are wider across the curve. Two year spreads are 1 1/4 basis points wider at 47. Three year spreads are 3/4 basis point wider at 51 1/2. Five year spreads are 1/2 basis point higher at 42 3/4. Seven years spreads are 1/4 basis point wider at 24 ...

Coincident Indicators

Tuesday, June 23rd, 2009

Calculated Risk has published a very interesting post from the Philly Fed. It shows  state by state economic activity levels and concludes that some 49 of the 50 states remain in recession. Anyone who expects the Federal Reserve to even remotely hint at raising rates graduated magna cum laude from the ...

Corporate Bonds

Tuesday, June 23rd, 2009

Corporate bond spreads are about a nickel wider today as the pause in the race to narrower spreads turned into a bit of a widening episode this day. One salesman noted that the left side( bid side) was being massaged today. The market is thin as quarter end approaches. The quarter ...

Agency Market

Tuesday, June 23rd, 2009

The Open Market Desk purchased about $ 2.0 billion of the approximately $ 4,8 billion agencies offered to them. Most of the purchase was the Freddie Mac April 2014 of which they bought $1 billion. This is in a sense pure monetization. Why is that? Because that issue until last week was ...

MBS and Vol

Tuesday, June 23rd, 2009

Mortgages are 2 ticks wider to swaps. There has been some modest buying by money managers and Asian investors. In general the level of activity is light as participants huddle together in anticipation of the FOMC policy statement tomorrow. The three month10 year ATM swaption straddle costs 673 basis points this morning.