Archive for September, 2009
Thursday, September 24th, 2009
Prices of Treasury coupon securities are posting small mixed changes in overnight trading.
The yield on the 2 year note has edged higher by a basis point to 0.97 percent. Likewise, the yield on the 3 year note has also climbed a basis point to 1.48 percent. Beginning with the benchmark ...
Posted in Uncategorized | 4 Comments »
Wednesday, September 23rd, 2009
The FT reports that the FOMC is contemplating doing reverses with mutual funds as primary dealers will not have enough balance sheet to handle the size of the transaction.
Posted in Uncategorized | Comments Off on Reverse Repo Redux
Wednesday, September 23rd, 2009
Prices of Treasury coupon securities gyrated about today like a drunken sailor and tested both ends of the recent 3.50 percent to 3.40 percent narrow trading range in the 10 year note. We are closing at the low end of that range.
Participants report a quiet day from customers. Within that ...
Posted in Uncategorized | 4 Comments »
Wednesday, September 23rd, 2009
Corporate bond spreads are for the most part firm in a quiet cash market.
There are signs of irrational exuberance in the new issue market.
Potash offered $ 500 million 6 year bonds and 500 million 10 1/2 year bonds today.
As I have noted in the past when one prices a 6 ...
Posted in Uncategorized | 1 Comment »
Wednesday, September 23rd, 2009
Swap spreads are tighter across the curve.
Roll adjusted the 2 year spread is 2 basis points tighter at 29 basis points. Five year spreads are 1 1/4 basis points tighter at 36 3/4. Ten year spreads are 2 basis points tighter at 19 1/4. Thirty year spreads are 2 basis ...
Posted in Uncategorized | Comments Off on Swaps
Wednesday, September 23rd, 2009
Here is the sloppy result of the 5 year note auction. It looks like a 3 basis point tail.
I think this just represents very cautious bidding in advance of the FOMC announcement at 215PM.
Posted in Uncategorized | Comments Off on Five Year Result
Wednesday, September 23rd, 2009
The Treasury will auction $ 40 billion 5 year notes in a little less than an hour.That amount is eligible for entry in the Guinness Book of Records as the largest offering of 5 year notes since the time that man began to walk erect.
The issue looks cheap to the ...
Posted in Uncategorized | Comments Off on Five Year Note Auction
Wednesday, September 23rd, 2009
Mortgages are approximately unchanged to swaps.
Money managers have parted with some 15 year paper in early trading.
Fast money has sold 4s and 4 1/2s.
The market is pretty quiet as participants await the Federal Reserve annoncement and parse if for something meaningful regarding mortgages.
Posted in Uncategorized | Comments Off on MBS
Wednesday, September 23rd, 2009
Swap Spreads are unchanged across the curve.
The 2 year spread is 31 basis points. That looks about 6 basis points tighter and reflects the 6 basis point roll into the new 2 year note.
The 5 year spread is 38. The 10 year spread is 21. The 30 year spread is ...
Posted in Uncategorized | Comments Off on Swap Spreads
Wednesday, September 23rd, 2009
**Recent New Issues in Financials: 9/22/09
LAST: PRICED:
MS 5⅝ 9/19 +229/224 +225
PNC 4¼ 9/15 +175/170 +185
GE 4⅜ 9/15 +206/201 +200
BACR 5 9/16 +180/175 +200
C 5½ 10/14 +300/295 +325
JPM 3.7 1/15 +144/139 ...
Posted in Uncategorized | 1 Comment »