Archive for October, 2009

A Trader Note On Russian Intervention Overnight

Friday, October 30th, 2009

INTERVENED IN LOCAL MARKETS...BOUGHT $700MM O/N...PROBABLY BOUGHT TREASURIES.. BIG STORY IS THE € AND AT 1.4800 WIDESPREAD INTERVENTION IS MOST LIKELY ON HOLD. RECENT RANGE ON NOT IN THE EUR 1.45/1.50 WITH THE HIGH BEING 1.5085.

Bond Market Open October 30 2009

Friday, October 30th, 2009

Prices of Treasury coupon securities have registered modest gains in overnight trading. There were a host of economic numbers in various venues but it seems that traders have latched onto a weaker than expected German retail sales number and have used that as a springboard to slightly higher prices (and ...

Text of the CBO Analysis of the Health Care Reform Bill in the House

Thursday, October 29th, 2009

Here is a link to the CBO analysis of the Health Care Bill. The meaty part is the last sentence of the following paragraph: Estimated Budgetary Impact of H.R. 3962 According to CBO and JCT’s assessment, enacting H.R. 3962 would result in a net reduction in federal budget deficits of $104 billion over the ...

Text of the Health Reform Bill in the House of Represntatives

Thursday, October 29th, 2009

Nothing should be this long. WhenI was in high school the school chapalin said to me that if you cant say it in seven minutes it is not worth saying. That was Father Pat Tonry SM and I wonder where he is today. He was a good priest and a grat ...

Evening Reading

Thursday, October 29th, 2009

Law Professor makes strong case that pay czar is unconstitional. Professor Hamilton on the GDP report and Calculated Risk on the same. Martin Feldstein on why the Chinese currency must appreciate. Hong Kong acts to limit risk taking. Bank of Japan to consider ending some emergency measures. Fight over the science of global warming via ...

Preview of Economic Data Scheduled for Release on October 30 2009 Via UBS

Thursday, October 29th, 2009

Preview: Confidence & Chicago PMI likely up, spending down, income flat (1) In late October, the Michigan index probably recouped some of its early-month decline (UBSe 71.5, cons 70.0). The index plunged to 69.4 in early October from 73.5 in September. The Rasmussen consumer index also fell ...

Bond Market Close October 29 2009

Thursday, October 29th, 2009

Prices of Treasury coupon securities tumbled today as someone magically flicked the "risk switch" to on today and risk assets prospered whilst risk averse assets languished. The headwind of seven year note supply ( $ 31 billion) and the consumation of a week in which the Treasury regurgitated $ 123 ...

Mortgage Downgrades

Thursday, October 29th, 2009

Bloomberg is carrying a story that Moody's might downgrade a significant chink of mortgage securities. (The fellow in charge also bought a lock for his barn door when he discovered the horse several miles from the barn.) The body of the story jives with the post I had this morning on ...

Swaption Vol

Thursday, October 29th, 2009

The premium on a three month/ten year ATM swaption straddle is 495 basis points. Annualized vol is 145.8 and the daily breakeven is9.1 basis points. The premium on a 5year/10 year ATM swaption straddle is 1493 basis points. Annualized vol is 122.2 basis points and the daily breakeven is 7.6 basis ...

Swaps and Corporates and MBS

Thursday, October 29th, 2009

Swap spreads are unchanged from the levels which prevailed when I wrote about them this morning. Two year spreads are still a basis point wider at 33 1/2. Five year and ten year and 30 year spreads are unchanged ,also, from earlier levels and rest at 33, 17 and NEGATIVE 9 ...