Archive for August, 2009

Musical Interlude

Wednesday, August 26th, 2009

I have not posted a musical interlude here in some time. Streaming through Across the Curve Global Headquarters today is one of the great Bob Dylan albums, "Bringing It All Back Home". There are too many great songs on this album but I would single out Love Minus Zero/No Limit, ...

Treasury Market

Wednesday, August 26th, 2009

The Treasury market is once again very quiet and very well bid. At 1100AM the Open market Desk will perform its long end buyback and there is no reason for prices to decline in advance of that. At 100PM the Treasury will christen the street with $ 39 billion 5 year ...

Mortgages and VOL

Wednesday, August 26th, 2009

MBS are about a tick weaker to swaps this morning. The level of activity is rather subdued. The three month/ten year ATM swaption straddle is 551 basis points as vol continues to slide.

New Issue

Wednesday, August 26th, 2009

By John Detrixhe Aug. 26 (Bloomberg) -- Westfield Group plans a benchmark sale of 6- and 10-year debt as soon as today, according to a person familiar with the offering who declined to be identified because terms aren’t set. A benchmark transaction is typically at least $500 million.

Durable Goods: Whole Not Equal to Sum of Parts

Wednesday, August 26th, 2009

The headline print on Durables was a robust gain of 4.9 percent. This number is very volatile and subject to chunky revisions. When one digs into the details it is not as strong as the headline. Non defense aircraft posted an increase of 107 percent. That is not likely to be repeated next ...

SWAP SPREADS

Wednesday, August 26th, 2009

Swap spreads are unchanged (roll adjusting the 2 year). Two year spreads are at 36 1/2. Five year spreads are at 41. Ten year spreads are 25 1/2. Thirty year spreads are NEGATIVE 9.

IG 12 and Some CDS

Wednesday, August 26th, 2009

- 5yr Snr Bank CDS: BAC 157/165 (unch), CITI 255/265 (unch), JPM 64/69 (unch), WFC 84/89 (unch) - 5yr Snr Broker CDS: GS 128/135 (unch), MS 160/170 (unch) - CDS Index: IG12 114.5/115.5 (unch)

Libor

Wednesday, August 26th, 2009

Today  0.37188 Yesterday  0.38000

A Nice Macroeconomic Summary Via Credit Suisse

Wednesday, August 26th, 2009

Market Views The global rates market has remained remarkably calm over the past week in the face of substantial equity market strength. We think the macroeconomic data and the signals from the world's central banks justify the current combination of risk market buoyancy and well-anchored G3 rates markets. We expect to see more of the same ...

Bond Market Open August 26 2009

Wednesday, August 26th, 2009

Prices of Treasury coupon securities are virtually unchanged in overnight trading. The yield on the 30 year bond is the one exception to that statement and it has declined a basis point to 4.21 percent. The other benchmark issues are unchanged. The 2 year note yields 1.06 percent. (That looks ...