Archive for September, 2009

Corporate Bonds

Tuesday, September 8th, 2009

New issues are the story in the corporate bond market today. As of this writing (219PM New York time) we know of $ 9.75 billion. One syndicate desk operative and friend of the blog reports that total but also notes that there are several deals which have yet to attach a ...

Corporate Bonds

Tuesday, September 8th, 2009

I have not done the corporate market justice today. There is very little trading in the secondary market and spreads are unchanged to a  tad tighter. However, there is a very active new issue calendar which is dominating  the trading landscape.Participants report pent up demand by investors and issuers as the level ...

Tainted Dollar

Tuesday, September 8th, 2009

The dollar entered relatively uncharted waters when it broke above 1.4450/60. One analyst with whom I converse suggests that there would be huge support at that level on a down trade. The next resistance for the dollar,according to the same analyst is 1.4600/1.4620. The all time high for the Euro was in ...

Miscellany

Tuesday, September 8th, 2009

The Open Market Desk bought nearly $5.0 billion of off the run securities in the 2016 through 2019 sectors. Primary dealers offered $ 14.5 billion. The Treasury will auction $ 38 billion of three year notes at 100PM. The issue is on the cheap side of the range versus the 2 year ...

VOL

Tuesday, September 8th, 2009

As I have noted I was traveling late last week. Consequently, I am not sure where vol was. The three month/ten year ATM swaption straddle, however, is making what appears to be a new low. It is currently 521 1/2 mid.

MBS and Treasury

Tuesday, September 8th, 2009

One trader (who I do not have permission to quote directly) notes in an email that MBS have lagged Treasuries during the recent rally from 3.85 ish 10 years down to 3.30 10 years. According to this veteran, LOAS has widened by 25 basis points to 30 basis points over the ...

Swaps

Tuesday, September 8th, 2009

Swap spreads opening mixed this morning. The 2 year swap spread is unchanged at 35 1/2. Five year spreads are a basis point tighter at 37 1/2. Ten year spreads are a basis point narrower at 37 1/2. Ten year spreads are one basis point narrower at 19. Thirty year ...

The Mighty(?) Greenback

Tuesday, September 8th, 2009

The dollar is cratering against most currencies this morning. The main factor is the return of a healthy appetite for risk . That appetite can be seen as global stock markets surge to new highs. There are other factors at work also. I published a piece last night which quoted an excerpt ...

Libor

Tuesday, September 8th, 2009

Today 0.30188 Yesterday  0.30875

Bond Market Open September 08 2009

Tuesday, September 8th, 2009

Prices of Treasury coupon securities are (on balance) posting modest gains in overnight trading. The yield on the 2 year note has slipped 2 basis points to 0.91 percent. The yield on the 3 year note has also declined 2 basis points and rests at 1.42 percent. The yield on the ...