Archive for August, 2009

Bond Market Open August 11 2009

Tuesday, August 11th, 2009

Prices of Treasury coupon securities, on balance, posted small losses in overnight trading. The yield on the 2 year note increased a basis point too 1.24 percent. The yield on the 3 year note climbed 2 basis points to 1.78 percent. The yield on the 5 year note edged higher by ...

Bond Market Close August 10 2009

Monday, August 10th, 2009

Prices of Treasury coupon securities surged today and erased some of the losses suffered Friday following the better than expected labor data. Why have we  rallied in front of an onslaught of supply? There are several reasons and some of them are obtainable with the advantage of perfect hindsight. Many had said ...

Various Spread Sectors

Monday, August 10th, 2009

Mortgages are about 3 ticks tighter to swaps today as the recent strong performance of that sector continues. Swap spreads are mixed. Two year spreads are 2 1/2 basis points tighter at 45. Five year spreads are 2 1/4 basis points better at 45 3/4. Ten year spreads are 2 1/4 ...

Freddie Mac

Monday, August 10th, 2009

Freddie Mac actually reported that they earned money in its most recent quarter,to the tune of some $ 768 million. The stock had a huge gain of about 73 percent. One analyst with whom I spoke questioned the euphoria which the report of net income sparked. As a starter there cost of ...

MBS

Monday, August 10th, 2009

Mortgages are opening 2 basis points to 3 basis points tighter to swaps.

Swaps and Corporates

Monday, August 10th, 2009

Swap spreads are opening narrower today. Two year spreads are in by 1 1/2 basis points at 46. Five year spreads are narrower by 1 1/4 basis points at 47. Ten year spreads are 1 1/4 basis points tighter at 32 3/4. Thirty year spreads are narrower by 1 basis point ...

IG 12 and Some CDS

Monday, August 10th, 2009

5yr Snr Bank CDS: BAC 133/143 (-2), CITI 220/235 (-7), JPM 53/63 (-3), WFC 72/82 (-3) - 5yr Snr Broker CDS: GS 87/97 (unch), MS 130/140 (-3) - CDS Index: IG12 104.5/105.5 (+1)

Bond Market Open August 10 2009

Monday, August 10th, 2009

Prices of Treasury coupon securities have posted very small mixed changes in overnight trading. The yield on the 2 year note has declined 2 basis points to 1.28 percent. The yield on the 3 year note has also slipped but by just a basis point to 1.82 percent. The yield on ...

Libor

Monday, August 10th, 2009

Three month Libor set at 0.45875 this morning versus 0.46125 on Friday.

Monetizing the Debt: My Response to Zero Hedge

Monday, August 10th, 2009

The Zero Hedge blog composed a very fine piece on the composition of the   Open Market Desk purchases of Treasury coupon securities and the time frame relative to the recent auction that the purchase was made. I discovered this pattern early in the process on March 27 and then again on ...