Archive for November, 2013
Wednesday, November 20th, 2013
Mortgages got caught up in the vortex of the steeper Treasury curve today. The 3.5 s were unchanged versus the 10 year but according to an end of day note from one dealer they lagged the en fuego 5 year by 18 ticks. Dealers reported modest origination selling and little ...
Posted in Uncategorized | Comments Off on MBS
Wednesday, November 20th, 2013
I have read several emails in which economics types are hiking forecast for Q3 GDP. One commentator suggested that it could be increased to as much as 4 percent based on spending data and inventory data released today. I have not seen reports on what the inventory accumulation will do ...
Posted in Uncategorized | Comments Off on Miscellany
Wednesday, November 20th, 2013
Swap spreads continue their inexorable march tighter. As we converse here 10 year spreads are below 4. I have written on this several times and reported that market participants have cited corporate issuance and stop outs on bad positions as the proximate cause for the move.
Watching the price action today ...
Posted in Uncategorized | 3 Comments »
Wednesday, November 20th, 2013
MBS spreads are tighter versus Treasuries by 1 tick to 3 ticks this morning . End user clients are better buyers. One market participant lamented the state of that market as there is little supply from originators currently and the Fed's purchases overwhelm sellers. The Open Market Desk purchases $45 ...
Posted in Uncategorized | Comments Off on MBS
Wednesday, November 20th, 2013
Prices of Treasury coupon securities declined in overseas trading. Most of the price declines for benchmark securities were very small though as I compose this the Long Bond is of 10 ticks. Someone had to sell but in the collection of reports I receive dealers observed better buying. I have ...
Posted in Uncategorized | 6 Comments »
Wednesday, November 20th, 2013
I posted an article from the FT on November 17 which noted that the Federal Reserve might delay imposition of the Volcker rule mandate of Dodd Frank. The WSJ carries an article which states that there might be a delay but the bad news is because some apparatchiks at acronymic ...
Posted in Uncategorized | Comments Off on More on Volcker Rule
Tuesday, November 19th, 2013
Bernanke spoke this evening and markets are little changed as I compose this. He regaled a crowd of economists on the topic of communicating Fed policy to the markets and the efficacy of such communication. I am not so sure it is a great idea. The greatest central banker of ...
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Tuesday, November 19th, 2013
A couple of guys making big bets via Bloomberg:
VIX Trader Bets $13 Million on 88% Jump in Fear Gauge by March
2013-11-19 18:25:30.682 GMT
By Nikolaj Gammeltoft
Nov. 19 (Bloomberg) -- An investor bought $13 million in
call options on the Chicago Board Options Exchange Volatility
Index, betting the gauge will rally at least 88 ...
Posted in Uncategorized | Comments Off on Red or Black Guesses
Tuesday, November 19th, 2013
Treasury rates are under pressure today as the market sells off. I have heard of real money clients selling both 5s and 30s. There are a couple of reasons for the selling according to people familiar with situation ( makes me sound like a newspaper guy). One source noted that ...
Posted in Uncategorized | Comments Off on Treasury Update and Early Thoughts on TIPS
Tuesday, November 19th, 2013
Jonathan Turley is a law professor at George Washington University and he has always been a darling of the left. He operates a blog and he has some decidedly non leftish musings recently about the Imperial Presidency and some of the recent actions of our regal President. He specifically questions ...
Posted in Uncategorized | 8 Comments »