Archive for August, 2009

FOMC Statement

Wednesday, August 12th, 2009

Moments ago the FOMC announced the results of its conclave and the conclusion is pretty much as expected. If I could offer a Readers Digest version of the statement it would be that the economy is improving but it will be a long and winding road back. They left in the statement ...

Post the 10 Year

Wednesday, August 12th, 2009

The bidding was less than enthusiastic than some had hoped it would be and the 10 year note tailed between 2.5 and 3.0 basis points. We are sitting near the lows of the day. The 2year/10 year spread is 2 basis points wider at 253 basis points. The 30 year is taking ...

Musical Interlude

Wednesday, August 12th, 2009

Musical Interlude today is "World Without Tears" by the remarkable Lucinda Williams. She has an unusual voice and a great style. It is not on this album but I think she does the single best cover of Gram Parson's signature song Grievous Angel.

Ten Year Auction

Wednesday, August 12th, 2009

The Treasury will auction $ 23 billion 10 year notes in about 90 minutes. The issue should receive a lukewarm reception and produce a small tail (tail for the uninitiated being the number of basis points between the auction determined yield and the yield prevailing in the market place when bids ...

Administrative Note

Wednesday, August 12th, 2009

I have been very busy today performing my role as grandfather to Charlotte Anne Jansen Preall. I will write a quick piece on the 10 year note and then will return for FOMC.

New Issue Update

Wednesday, August 12th, 2009

**New Issue Update: Financials          8/12/09 LAST:              PRICED: GE     3½  8/12    184/179            +180 VS T3 RABOBK 2.65 8/12    98/93              +92  VS T3 CS     5.3  8/19    164/159            ...

Ten Year Techical Talk

Wednesday, August 12th, 2009

For those who like techical talk here is an excerpt from the morning letter of David Ader of CRT Capital: * 10s – The notable event here is that yields broke under the range of NFP day after matching that day’s high on Monday.  Candlestick fans will observe a dark cloud ...

Overnight Economic News

Wednesday, August 12th, 2009

Overnight in China equities declined over 4 percent. The Commerce Ministry in China said that it was unlikely that domestic demand could make up for the shortfall in exports caused by the global economic contraction. In Japan there is a whiff of  deflation wafting through the air as PPI declined 8.5 per ...

Bond Market Open August 12 2009

Wednesday, August 12th, 2009

Prices of Treasury coupon securities are posting very small mixed changes in overnight trading as bond market participants around the globe fixate on the auction of $ 23 billion 10 year notes as well as the statement from the FOMC later today regarding the near term course of monetary policy. The ...

Bond Market Close August 11 2009

Tuesday, August 11th, 2009

Prices of Treasury coupon securities have surged today as the trifecta of auctions began with a successful auction of three year notes. The yield on the 2 year note has declined 5 basis points to 1.19 percent. The yield on the 3 year note has dropped 6 basis points to 1.72 ...