Archive for November, 2009

Swap Spreads

Thursday, November 19th, 2009

Swap Spreads are wider across the curve today. Two year spreads are a basis point wider at 31. Five year and 10 year spreads have each leaked a basis point wider at 29 1/2 and 10 1/2, respectively. Thirty year spreads are 2 basis points wider at NEGATIVE 12.

Early MBS Color

Thursday, November 19th, 2009

**Mortgages not particpating much in rally and are wider by ~1 to 1.5bps across the stack.  Higher dollars bring origination and MBS have had trouble finding clearing levels with 4.5's north of 102.  Better selling yesterday also has an overhang in the market and we expect mortgages to lag given the amount of orignation and ...

Stimulus

Thursday, November 19th, 2009

Here is an interesting piece from the Bureau of Labor Statistics. The 2008 one shot payments to taxpayers as stimulus in 2008 were largely ineffective. Taxpayers used nearly 70 percent of that money to pay down old debt or for savings. Only 30 percent was actually spent.

IG 13 and Some CDS

Thursday, November 19th, 2009

- 5yr Snr Bank CDS: BAC 123/128 (+3), CITI 190/200 (+8), JPM 54/59 (+1), WFC 93/98 (+2) - 5yr Snr Broker CDS: GS 103/108 (+2), MS 136/141 (+2) - CDS Index: IG13 101.25/101.75 (+2)

Antipodean Currency Thoughts Via Brown Brothers

Thursday, November 19th, 2009

The New Zealand dollar is leading the move lower against the dollar and yen, and highlights concern about possible moves by various countries to limit currency gains.  Today’s pressure on the New Zealand dollar stems from official comments from the Treasury and from the opposition Labour party.  According to a ...

Intervention

Thursday, November 19th, 2009

One trader reports via email the HKMA purchased a rather chunky $ 2.1 billion US dollars overnight.

Bond Market Open November 19 2009

Thursday, November 19th, 2009

Prices of Treasury coupon securities are registering virtually no change in overnight trading. As I peruse the news ,there is not one story which jumps out and grabs me as particularly pithy. And I guess I am not alone as the US bond market manifests virtually no movement. An examination of various ...

Preview of Economic Data Via UBS

Thursday, November 19th, 2009

Preview: UBS est jobless claims 500k, Philly Fed index 15.0, LEI +0.2% (1) The trend in new jobless claims (cons 504k, UBSe 500k, after 502k) has been downward. At 520,000, the latest four-week average was the lowest level since November 2008. The upcoming report will cover the week including the Veterans ...

Administrative Note

Wednesday, November 18th, 2009

Today I will be gone for the afternoon. I have a meeting in the big city. My apologies and normal blogging will resume tomorrow.

Treasury Market Musings.

Wednesday, November 18th, 2009

The Treasury market is posting mixed results today in very quiet trading. Traders focused on comments from Saint Louis Fed President Bullard which the head line writer suggested that the FOMC would not tighten until 2012.  That is an open question and is subject to varying interpretation. In my opinion the ...