Archive for July, 2009

Bond Market Open July 22 2009

Wednesday, July 22nd, 2009

Prices of Treasury coupon securities are virtually unchanged in overnight trading. The 2 year note yields 0.92 percent and the 3 year note yields 1.45 percent. The yield on the 5 year note is 2.34 percent whilst the investment grade 7 year note yields 3.03 percent. The 10 year note ...

Libor

Wednesday, July 22nd, 2009

Libor set at 0.50188 this morning versus 0.50313 yesterday.

Marginal Chinese Dollars

Tuesday, July 21st, 2009

The FT has an article which details comments by the Chinese premier in which he states that some of the country's pile of dollars will be used to assist corporations in making non China acquisitions. The US budget deficit will be prodigious over the next decade and the loss of any ...

Bond Market Close July 21 2009

Tuesday, July 21st, 2009

Prices of treasury coupon securities have surged today as the staid market for government bonds transposes into a very volatile and combustible venue. The greatest gains were in the longer maturities while shorter dated paper improved but lagged its longer maturity brethren. Once again a confluence of factors worked to push ...

Agencies

Tuesday, July 21st, 2009

Agency spreads are 2 basis points to 3 basis points tighter across the curve. One traded averred that the Bernanke restatement that financing would be low for that famous "extended period" generated some buying in the under one year sector. Home Loan announced a 3 year deal which will price tomorrow. ...

MBS and Swaps and VOL

Tuesday, July 21st, 2009

Swap spreads are tighter across the yield curve. One salesman noted receiving by real money, speculators and servicers. Two year spreads have narrowed 3 3/4 basis points to 43 3/4. Five year spreads have narrowed 2 1/2 basis points to 47 3/4. Ten year spreads have tightened 3 1/4 basis points ...

Innocuous Ben

Tuesday, July 21st, 2009

Innocuous is a word which springs to mind when one finishes reading the Ben Bernanke prepared text. He did not add anything to our store of knowledge regarding monetary policy. The economic climate and its credit backdrop has improved but each remains fragile and tentative. The labor market remains quite week and ...

Miscellany

Tuesday, July 21st, 2009

TheTreasury market is having a huge move to lower yields as we speak. i will eventually get to Bernanke but there is not enough substance in his testimony to justify the price action. There has been central bank buying throughout the morning in the 3 year through 7 year part of ...

Corporate Bonds

Tuesday, July 21st, 2009

Corporate bond spreads are "en fuego". Yesterday, packaging products company Bemis (BMS) offered $400 million 5 year notes and $400 million 10 year notes at a spread of T+325 in each instance. The initial talk was T+375. To demonstrate the state of the market the issue is currently 260 bid. Anything with ...

Citi

Tuesday, July 21st, 2009

The Citibank 30 year priced yesterday at T+380. I have just seen a quote in which the bid side is 366.