Bond Auction Results
Thursday, January 9th, 2014Excellent auction result. Indirect bidders took 44 percent which is about 4 percent more than usual. The dealers shot the taxpayers in big toe on this one!
Archive for January, 2014
Excellent auction result. Indirect bidders took 44 percent which is about 4 percent more than usual. The dealers shot the taxpayers in big toe on this one!
Bond Auction
Thursday, January 9th, 2014Long Bond is at is lowest price of the day. This one is tough call as you need to weigh the recent out performance of the back end against client need for duration. Street bid will be lighter as lots of supply trades have gone awry and are blot on ...
Very Brief MBS
Thursday, January 9th, 2014Originator selling is in the $500 to $600 million zone. So nothing onerous. FNMA 3s are 1 tick wider to Treasuries and the 4.5s are a + tighter.
Corporate Bonds
Thursday, January 9th, 2014Corporate bonds spreads had widened the last several days when I was not following closely but have reversed somewhat today. One syndicate desk source reports that over last several days metals were + 10 basis points, energy +5 and bank and finance + 3 to 4. Today there is a ...
Thirty Year Bond Auction Background
Thursday, January 9th, 2014This is some background on the bond auction set for 100PM via CRT Capital Group. Via CRT Capital Group; 30-year reopening auctions have performed well recently, with three of the last four stopping-through for an average of 1.2 bp vs. December’s tail of 1 bp. • Historically, we’ve only had four January 30-year ...
Swap Spreads
Thursday, January 9th, 2014Swap Spreads are a basis point to 2 basis points wider today. I think there are two reasons. There is nervousness about rates moving higher and paying which might accompany that move. Last summer in that sell off 10 year swap spreads briefly traded at 25 basis points and in ...
Long Bond Auction
Thursday, January 9th, 2014At 100PM the Treasury will complete this week's spate of auctions with an offering of $13 billion Long Bonds. It is an interesting moment for traders and presents itself to us with the market at a crossroad. I will analyze this but in a manner which I normally find distasteful. ...
Repo Regulation Repercussions
Thursday, January 9th, 2014Interesting note from Bloomberg news on the repo market: Via Bloomberg News: Regulatory Changes May Eliminate Matched-Book Repo, Skyrm Says 2014-01-09 15:18:09.515 GMT By Alexandra Harris Jan. 9 (Bloomberg) -- Independent repo strategist Scott Skyrm publishes 2014 predictions in blog post, based on changing regulatory landscape, which includes Basel III, Fed’s desire to set haircut floors for repo ...
TIME for Yellen
Thursday, January 9th, 2014Janet Yellen is in and a fully paid up subscriber notes that maybe Hilsenrath is out. Here is a link to a Time magazine interview of the new chairman with two X chromosomes and it is not a Hilsenrath story. Warning they only give you a tease if you are ...
Eurodollar Futures Open Interest
Thursday, January 9th, 2014There were huge declines in some of the Eurodollar contracts yesterday and market sources attributed those declines to sales by PIMCO. One of the commenters on the blog who goes by the initial R left a link to the CME which shows that there were not big liquidations in the ...