Archive for November, 2009

Excellent MBS Color

Tuesday, November 17th, 2009

A lot of questions about why MBS are significantly weaker today (now about 5 to 6 ticks vs UST).  First there has been some sell -ing.  Second, the short base has been squeezed out over the past two weeks (net of today MBS are still over 1 point tighter over this period).  Third, the ...

MBS

Tuesday, November 17th, 2009

Mortgages got smoked late yesterday as servicer selling and orignation selling blessed the street with chunks of bonds post 300Pm yesterday. That selling continues this morning and traders report that bonds are 1 tick to 2 ticks wider versus swaps today and about 8 ticks wider versus levels which prevailed at ...

New Issue

Tuesday, November 17th, 2009

Gerdau May Sell Up to $1 Billion 10-Year Bonds to Yield 7.375% 2009-11-17 13:27:30.989 GMT By Veronica Navarro Espinosa Nov. 17 (Bloomberg) -- Gerdau SA, Latin America’s largest steelmaker, may sell as much as $1 billion of 10-year bonds to yield about 7.375 percent, according to a person familiar with the transaction who declined to be ...

JPMorgan Client Duration Survey

Tuesday, November 17th, 2009

THIS WEEK     LAST WEEK     2WKS AGO LONG              29            27           22 SHORT             20            20            21 NEUTRAL           51            53  ...

More Intervention and Other Stuff Via Anonymous Dealer

Tuesday, November 17th, 2009

HONG KONG, KOREAN, LATIN AMERICAN ELEMENTS AND OTHERS SEEN BUYING DOLLARS OVERNIGHT. LOOKS LIKE $2BLN VISIBLE BUT ONLY ABOUT HALF OF THAT WILL BE RE-INVESTED WITH TE OTHER HALF TO PAY OFF DOLLAR DEBT. STILL SHOULD SEE SOME CENTRAL BANK BUYING POST 8:30 DATA, THOUGH WE THINK INDUSTRIAL PRODUCTION AT ...

Addition to Blogroll

Tuesday, November 17th, 2009

I added an excellent new blog to the roll, Cali Beach Pundit.

Libor

Tuesday, November 17th, 2009

Today   0.27031 Yesterday  0.27125

SOme Thoughts on RBA Via Brown Brothers

Tuesday, November 17th, 2009

The RBA again expressed caution about the speed of prospective rate hikes in coming months reinforcing our view that the next hike is unlikely until Q110. The minutes from the last meeting Nov 3 revealed some caution from the policymakers in terms of balancing risks of inflation against the possibility ...

Taiwan Debases Its Own Currency Versus Dollar

Tuesday, November 17th, 2009

Taiwan Bought U.S. Dollars to Slow Currency Gains, Traders Say 2009-11-17 11:16:37.24 GMT By Yu-huay Sun and Lilian Karunungan Nov. 17 (Bloomberg) -- Taiwan’s central bank intervened in the foreign-exchange market to slow gains in the local currency, said two traders familiar with the bank’s operations. The island’s dollar rose to the highest level in more ...

Bond Market Open November 17 2009

Tuesday, November 17th, 2009

Prices of Treasury coupon securities have posted modest losses in overnight trading as the bond market surrenders some of the chunky gains achieved yesterday in response to the Bernanke papal bull. That proclamation was a solid recitation of a litany of reasons why the funds rate is likely to remain ...