Archive for November, 2009

History Lesson

Sunday, November 29th, 2009

I begin my new work enterprise at TD securities in about nine hours. I want to thank everyone for the warm and gracious response to the news. I want to reiterate that the future of the blog is undetermined as I write this. If you desire to establish a professional relationship and ...

Brown Brother Regarding Banks

Tuesday, November 24th, 2009

Heightened concerns about the global banking sector are front and center today. There are two press articles to note.  The first is the FAZ story warning that the two regional banks that hold a majority stake in West LB indicate they are prepared to let the bank become insolvent.  This ...

Bond Market Open November 24 2009

Tuesday, November 24th, 2009

Prices of Treasury coupon securities are posting modest gains in overnight trading. We are well into the holiday we and I suspect that trading volumes will be on the light side,notwithstanding the chunky auction of 5 year notes later today. That process should dominate the bond market landscape as dealers put ...

Preview of Economic Releases November 24 2009 Via UBS

Monday, November 23rd, 2009

Preview: Confidence, home prices, GDP, ASA staffing, FOMC minutes (1) The Conference Board consumer confidence index probably fell again in Nov. That would match the pattern in other measures in early Nov. (2) Home prices have turned upward since Q2, probably reflecting strength in underlying demand, a temporary boost from the ...

Bond Market Close November 23 2009

Monday, November 23rd, 2009

Prices of Treasury coupon securities are posting small mixed changes on this day when the Treasury began the process of regurgitating $ 116 billion of securities via sales of 2 year notes, 5 year notes and 7 year notes. In initial trading this morning the curve steepened rather sharply and 2year/10 ...

Two Year Auction Color VIA RBS Securities

Monday, November 23rd, 2009

$44B in new 2yr notes come at 0.802% or right on top of 1pm levels. *U.S. AWARDS 44.5% OF 2-YR TO INDIRECT BIDDERS *U.S. TWO-YEAR NOTES BID/COVER RATIO 3.16 AT AUCTION Direct bidders took 4.7% of the auction (well down from last month and back to averages seen before Sept. The Dealer award ...

Two Year Result

Monday, November 23rd, 2009

The 2 year stopped approximately at the level at which it was trading prior to auction. The auction yield was 0.802.

Two Year Note

Monday, November 23rd, 2009

In a few minutes the Treasury ( for the second time ) will auction the largest batch of 2 year notes issued since man began to walk erect. Traders believe that it will go quite well and expect a stop inside of market levels ( currently 0.80 percent).

Corporate Bonds

Monday, November 23rd, 2009

Corporate bonds are firm at the open as investors genuflect to the strong signals emanating from the equity market. One salesman noted that most sectors are 1 basis point to 2 basis points wider. There are no new issues on the burner at the present time. Just to make the point of ...


Monday, November 23rd, 2009

Mortgages are 1 basis point to 1 1/2 basis points tighter to swaps. There has been some bank buying of the 15 year sector. The buying has been by small and medium sized banks. The Bullard comments about extending the MBS QE have not had a strong result thus far. One trader in ...