Archive for November, 2009

Bond Market Opening November 18 2009

Wednesday, November 18th, 2009

Prices of Treasury coupon securities have sagged in overnight trading. As far as I can tell there was no piece of news or data which moved the market lower. Equity markets in Asia declined modestly while European markets are posting modest gains. The last time I looked it appeared the US ...

Brown Brothers on French Credit Rating

Tuesday, November 17th, 2009

Moody’s said that France’s plans for debt-funded public spending does not pose a threat to its Aaa rating. The agency believes that the plans amount to around EUR 35 bln, which it said would only marginally weaken France’s position in the Aaa category over the shot-term.  The euro was already ...

Preview of Upcoming Economic Data Via Ubs

Tuesday, November 17th, 2009

Preview: Housing starts down slightly? Total CPI 0.3%, core CPI 0.1%? (1) We forecast a small decline in housing starts in October (UBS: -2.5%m/m to 575k, cons: +1.7%m/m to 600k) unwinding the modest rise in September (+0.5% to 590k). That was the message from the housing market index (HMI)—an indicator ...

Last Bit of MBS Color

Tuesday, November 17th, 2009

*******   Mortgage Update......                                 -mortgages finally ran into a wall yesterday afternoon and      continued to trade poorly throughout this morning.  Over the    past 24hrs we've seen current coupons give back 8-10/32 vs      treasury ...

Administrative Note

Tuesday, November 17th, 2009

I will be out for the remainder of the day. In the Treasury market there is a flight to the long end as the liquidity driven rally impels investors to venture (perilously) out the curve. Many have read the Bernanke speech and concluded that the extended period will indeed be extended. One ...

Euro Dollar Color

Tuesday, November 17th, 2009

The Eurodollar futures curve started the day showing higher yeilds and a slightly steeper curve, it has since been trying to bear flatten, probably due to people preparing for next week's supply. We've seen people selling the 2 year bundle to buy the Blues, the Golds, and the back end.  ...

More MBS Color

Tuesday, November 17th, 2009

I have been receiving some excellent MBS color today. Here is another report from another trader: Flows have been heavy and two way out of the gate this morning. Selling (mostly 4.5s and 5s) has come from originators (already 1.5BB total), Asia, hedge funds, and money managers. Buyers are the FED and ...

Qatar

Tuesday, November 17th, 2009

I personally would not buy a bond from an issuer whose names begins with a Q and who does not follow the Q with a U. I am in a minority because said issuer is flooding the market today. To wit: *QATAR MAY SELL $1 BLN 30-YR BOND TO YIELD SPREAD OF 215 ...

Boeing

Tuesday, November 17th, 2009

Boeing is bring a 3 year and a 7 year. Price talk is 85 and 100, respectively. I have not seen size anywhere.

More MBS

Tuesday, November 17th, 2009

I have received several email reports that mortgages have pared their losses. They were as much as eight ticks wider and are now back to just 2 ticks to 3 ticks wider to swaps. One dealer noted that the selling which began late yesterday had abated and there has been some ...