Archive for August, 2009

BLS Error

Tuesday, August 11th, 2009

14:44 11Aug09 RTRS-U.S. PRODUCTIVITY REPORT CONTAINS 'ERRORS' ON COMPENSATION, UNIT LABOR COSTS - BLS 14:44 11Aug09 RTRS-BLS SAYS WILL ISSUE CORRECTED VERSION OF PRODUCTIVITY REPORT 'AS SOON AS POSSIBLE' 14:44 11Aug09 RTRS-BLS OFFICIAL SAYS ERRORS WON'T AFFECT Q2 PRODUCTIVITY, BUT Q2 UNIT LABOR COSTS TO BE CORRECTED

MBS,Swaps and VOL

Tuesday, August 11th, 2009

Swaps are tighter across the curve. Mortgage servicers have been busy receiving and end user clients have been establishing curve flattening positions. The two year swap spread is 2 basis points tighter at 42. Five year spreads are 4 basis points tighter at 41 1/4. Ten year spreads are 2 1/2 basis ...

Three Year Note Auction

Tuesday, August 11th, 2009

The Treasury will auction $ 37 billion in 3 year notes in about an hour. I think that the auction will go quite well. The issue is cheap to the 2 year note in the upper 50s. I do not watch the 2year/3 year/5 year butterfly but analysts whom I respect tell ...

Error and Apology

Tuesday, August 11th, 2009

In an earlier post I wrote that the Open Market Desk is buying 2019 through 2026 paper. That is very wrong as they are purchasing 2026 through 2039 paper. http://www.newyorkfed.org/markets/pomo/display/index.cfm

Agency Market: On Top of Treasury market

Tuesday, August 11th, 2009

Here is an interesting ( to me ) factoid. One year bullet agencies and 1year/non call 6 month agencies trade at 0.56 percent. One year Treasury bullets trade at 0.54 percent. There aint alot of room for improvement in that spread!!!

Trade

Tuesday, August 11th, 2009

I just bought TBT at 51.08

Treasury Market Musings

Tuesday, August 11th, 2009

The Treasury market is having a pretty dramatic surge with the Long Bond up more than a point. The Federal Reserve is intervening in the market at 1100 AM at which time they will purchase the 2019 through 2026 sector of the Treasury market. That purchase has contributed to the firmness ...

MBS

Tuesday, August 11th, 2009

Mortgages are opening slightly better bid this morning. One e mail notes that 5 1/2s are leading the charge. The same trader notes that spreads are very tight. However, there is little supply and the central bank continues to suck up bonds. The conclusion is that on any spread widening episodes ...

Corporate Bonds

Tuesday, August 11th, 2009

Financial names are opening weaker this morning. There have been sellers of the GECC three year at 175 and 176. The new Rabo Bank issue is for sale,also. Credit Suisse priced a 10 year at 155 yesterday and it opened 152 bid. It currently stands 158/154. Some traders hod the view that there is ...

Libor

Tuesday, August 11th, 2009

Libor set at .45438 this morning versus .45875 yesterday.