Archive for October, 2009
Wednesday, October 28th, 2009
5-year auction stops at 2.388% vs. a 2.375% 1-pm bid WI.
* Dealers were awarded 42.3% vs. 45% average of last four 5-year auctions.
* Indirects get 54.8% vs. 50% norm -- on the strong side.
* Directs take 3.0% vs. 4.6% average -- nothing special
* Bid/Cover was 2.63 vs. 2.35 average of ...
Posted in Uncategorized | Comments Off on Five Year Result Via CRT: Small Tail
Wednesday, October 28th, 2009
The unabated firm tone in the corporate bond market has taken a bit of a day off today as the some of the derisking apparent elsewhere in the capital markets manifests itself in the investment grade bond market too.
Quality industrial names are unchanged to 2 basis points wider.Bank and finance ...
Posted in Uncategorized | Comments Off on Corporate Bonds
Wednesday, October 28th, 2009
Introducing 2011 US economic forecasts
Real GDP growth seen at 3.0% in 2011 after 2.6% in 2010
We are introducing our 2011 US economic forecasts. For 2011 we expect calendar average real GDP growth of 3.0%, a modest acceleration from our unchanged 2.6% projection for 2010. On the Q4/Q4 basis used ...
Posted in Uncategorized | Comments Off on Long Range Forecasts From UBS
Wednesday, October 28th, 2009
Swap spreads are mixed.
Adjusting for the roll into the new 2 year note, two year spreads are a basis point wider at 32 1/2. Five year spreads are unchanged at 36 1/2. Ten year spreads are one basis point tighter at 17 and thirty year spreads are also a basis ...
Posted in Uncategorized | Comments Off on Swaps
Wednesday, October 28th, 2009
Mortgages are opening in line with swaps this morning. One dealer reports some overnight selling of 4 1/2 coupons by Asian investors.
Posted in Uncategorized | Comments Off on MBS
Wednesday, October 28th, 2009
The US dollar is firm against most of the major currencies, save the Japanese yen. It is generally trading within yesterday's ranges, but dips have been shallow. We see two conflicting forces at work. Although we have a positive medium term dollar outlook, we recognize that a key short-term fundamental ...
Posted in Uncategorized | Comments Off on Brown Brothers on the Dollar
Wednesday, October 28th, 2009
A huge (soon to be $ 1trillion ) pension fund in China questions the ability of the US government to keep the greenback stable.
Geithner sees US dollar as reserve currency for long time.
Posted in Uncategorized | 5 Comments »
Wednesday, October 28th, 2009
Prices of Treasury coupon securities have maintained the strong tone which prevailed for much of yesterday's session and are slightly better bid as trading shifts across the big pond to the States. Equity markets around the gobe have experienced weakness and pre market trading indicated that shares will open soft ...
Posted in Uncategorized | 1 Comment »
Wednesday, October 28th, 2009
I'M USING THE HONG KONG MONETARY AUTHORITY (HKMA) AS MY PROXY FOR ASIAN TIGER AND SMALLER RESERVE CENTRAL BANKS BECAUSE THEY ARE SO VISIBLE. THEY INTERVENED O/N ON AN EQUIVALENT BASIS OF $300MM, AT THE LIGHTER END OF THEIR OPERATIONS...I SUSPECT THERE WAS SMALLER THAN NORMAL CENTRAL BANK TREASURY BUYING ...
Posted in Uncategorized | Comments Off on HKMA
Wednesday, October 28th, 2009
The MSCI Emerging Markets Index dropped 1.7% to 931.08 in London, bringing this week’s retreat to 3.8%, the biggest three-day loss since June 17. South Korea’s Kospi Index fell 2.4% after SK Energy reported a46% decline in third-quarter profit. TelekomunikacjaPolska, Poland’s largest phone company, slumped 3.4% asits earnings ...
Posted in Uncategorized | Comments Off on RiskReduction