Archive for November, 2009

MBS: Weaker to Treasuries but Still Steamy

Monday, November 16th, 2009

Mortgages are opening around 3 ticks wider vs. treasuries on relatively light flow.  We did see some overseas selling last night and are seeing further pressure in 4½'s this morning with the fly trading @ -1 earlier this AM.  We haven't seen any origination so far and early color is that weekend production was in ...

Empire Survey

Monday, November 16th, 2009

The Empire Survey of manufacturing in the New York region posted a larger than expected decline of about 11 points following outsized gains in the prior month. I thought the interesting part of this report was the in the supplemental question which the Fed submitted to respondents. The Fed asked questions regarding ...

FTN on Retail Sales

Monday, November 16th, 2009

Headline retail sales grew 1.4% in October, a bit stronger than expected.  Year-over-year, sales remain in the red, down 1.7%. Excluding autos, sales rose a meager 0.2%, down 2.4% year-over-year.   The details of the report were mixed.  Motor vehicles and parts sales rose 7.4% in October, a nice rebound after the 14.3% drop-off in September ...

Corporate Issuance Begins

Monday, November 16th, 2009

AmerisourceBergen to Sell $400 Million of Debt as Soon as Today 2009-11-16 13:56:03.857 GMT By Nikolaj Gammeltoft Nov. 16 (Bloomberg) -- AmerisourceBergen Corp., a distributor of pharmaceuticals, plans to sell $400 million of 10- year senior notes as soon as today, according to a person familiar with the transaction. Bank of America Merrill Lynch and JPMorgan Chase ...

Curve Flattening Thoughts

Monday, November 16th, 2009

There is a rather dramatic flattening of the yield curve this morning. The 2 year note has hit a brick wall at about the 0.80 percent level. So investors are seeking gratification and income in longer maturities. Here are some of the reasons that participants have offered for the yield grab. many investors ...

IG 13 and Some CDS

Monday, November 16th, 2009

- 5yr Snr Bank CDS: BAC 114/119 (-2), CITI 190/200 (-3), JPM 53/58 (-2), WFC 90/95 (-3) - 5yr Snr Broker CDS: GS 97/102 (-3), MS 128/133 (-3) - CDS Index: IG13 97.5/98.25 (-2)

Potential Corporate Issuance

Monday, November 16th, 2009

Ed Baldinger works at Bloomberg and composes a couple of informative pieces each day on the corporate bond market. In his morning piece today he suggests several potential issuers on the horizon: "Potential issuers include; Kellogg Co A3/BBB+ To tender for outstanding issues Emirates Bank Intl - investor talks     Barc/HSBC/UBS Albert-Culver Baa2/BBB- Filed Debt Shelf ...

Libor

Monday, November 16th, 2009

Today  0.27125 Yesterday 0.27250

Small Bit on Sovereign Credit Spreads Via Brown Brothers

Monday, November 16th, 2009

Most sovereign bonds are continuing to gain ground after last week’s gains.  In Asia, however, the 10-year JGB is steady after having posted its first weekly gain in over a month last week and despite another JPY2.7 bln of expected stimulus.  Yet concerns about the fiscal situation in Japan appear ...

Bond Market Open November 16 2009

Monday, November 16th, 2009

Prices of Treasury coupon securities have posted mixed (and seemingly random ) results in overseas trading. I am not sure which particular factors influenced trading but there is more data and information to absorb this morning, today and this week than in any similar period recently. The yield on the 2 ...