Archive for July, 2009

Bond Market Open 07/08/09

Wednesday, July 8th, 2009

Prices of Treasury coupon securities have posted modest and uniform gains in overseas trading. There was a baseball announcer for the Brooklyn Dodgers (whose name I cant recall) who would sometimes proclaim that deuces were wild when there were two men on base and two out and sometimes the score might ...

Bond Market Close July 07 2009

Tuesday, July 7th, 2009

Prices of Treasury coupon securities (mostly) are surging today as wobbly equities provide the impetus for a breakout rally. It really is not just the weakness in equities which has pushed yields lower but a confluence of several factors. First some levels and then some reasons. The 2 year note is ...

SWAPS and MBS and VOL

Tuesday, July 7th, 2009

Swap spreads are mixed. Two year spreads are tighter by 3/4 basis point at 38.Three year spreads are 1/4 basis point wider at 49 1/2. Five year spreads are unchanged at 42. Seven year spreads are 1/4 basis point wider at 19 1/4. Ten year spreads are 1 basis point ...

Corporate Bond s

Tuesday, July 7th, 2009

Corporate bond spreads remain little changed in muted trading. Barclays priced $ 2.5 billion 5 year notes at T+ 2 7/8 . The issue is 10 basis points tighter in the gray market. Poland priced $ 2billion 10 year notes at T+290. I have not been able to find a quote on ...

Musical Interlude

Tuesday, July 7th, 2009

Now playing at Across the Curve global headquarters "The Essential Johnny Cash".It is a two disk "best of " CD.  I enjoy the stuff he did with June Carter and with Dylan.

Agency Market

Tuesday, July 7th, 2009

Agency spreads are mixed today. Two year spreads are tighter by a basis point and five year spreads are a basis point wider. Ten year spreads are 1/2 basis point tighter. The Federal Reserve announced that beginning July 9 2009 it will make available to the market agency bonds which it ...

Treasury Market Miscellany

Tuesday, July 7th, 2009

The three year note auction tailed about 2.5 basis points with  Timothy Geithner awarding bonds to bidders at a rate of 1.519. The market has been well bid and firm all morning. Some reported central bank buying this morning in the new three year note. Others report that the pricing of ...

Three Year Note Musings

Tuesday, July 7th, 2009

In  my original post this morning I was somewhat negative on the 3 year note because I thought that the widely held and very crowded trade is the curve steepener. I think that works to the detriment of the 3 year note and I believe that the trade which hurts ...

Swaps

Tuesday, July 7th, 2009

Swap spreads are tighter by 1 3/4 basis points at 37 3/4. Five year spreads are 1 basis point tighter at 41. Ten year spreads are 1 1/4 basis point tighter at 10. Thirty year spreads are 1 basis point tighter at NEGATIVE 19.

Corporates and MBS

Tuesday, July 7th, 2009

Mortgages opened 1tick to 2 ticks tighter to swaps. Selling from originators remains muted. The US central bank and other central banks have been spotted as buyers of pass throughs. The up in coupon trade is outperforming. Corporate bond spreads are unchanged in a very quiet market. As i reported yesterday ...