Archive for March, 2014
Wednesday, March 19th, 2014
The 2s 5s 10s spread cheapening dramatically. That spread has moved from 7 basis point this morning to 9 basis points just prior to the announcement to 17 basis points as I type this electronic missive.
Posted in Uncategorized | Comments Off on Yield Curve Agonies
Wednesday, March 19th, 2014
In early trading I am hearing of hedge funds sellers versus the belly around the 200 basis points level on 5s 30s and fast money traders taking a stick to the 2 year note.
Posted in Uncategorized | Comments Off on Treasury Flow
Wednesday, March 19th, 2014
The 5s 30s spread has moved inside of 200 basis points from 207.5 prior to the FOMC statement. The proximate cause of the carnage for that issue is that FOMC members expect the funds rate to be 1 percent at the end of 2015 and 2.25 at the end of ...
Posted in Uncategorized | Comments Off on Rate Guidance
Wednesday, March 19th, 2014
The 2s 5s 10s butterfly is out to 13 basis points. I believe it never traded cheaper than 12 on unemployment Friday when the 10 year traded back to 2.82. So 5s are cheap on that fly given the rate level.
Posted in Uncategorized | Comments Off on More Yield Curve Stuff
Wednesday, March 19th, 2014
The 5s 30s spread breaking tighter and at new cycle low at 202 now versus 207.5 moments prior to statement.
Posted in Uncategorized | Comments Off on Yield Curve Shifts
Wednesday, March 19th, 2014
I have a predilection to criticize all things associated with Obama and ObamaCare but the skyrocket word in the headline is the choice of the headline writer at TheHill.com which carries the story. The article notes the stiff increases result from changes to the law arbitrarily made by the Administration ...
Posted in Uncategorized | 2 Comments »
Wednesday, March 19th, 2014
Mortgages are opening unchanged following a solid performance yesterday. One dealer noted that yesterday was about short covering and yield chasing trades. Today is about staying flat until the FOMC speaks at 200PM. The FOMC will be in buying ,as is their wont, and so dealers will scramble to buy ...
Posted in Uncategorized | Comments Off on MBS
Wednesday, March 19th, 2014
Ekathimerini is a Greek newspaper and I bookmarked the site during the debt crisis there to have my finger on the pulse of the main player in that crisis. I had not checked in there recently but just found this story. Piraeus Bank Sa in Greece sold 500 million Euros ...
Posted in Uncategorized | Comments Off on Greek Revival
Wednesday, March 19th, 2014
First of all a giant tip of the hat to Jon Kimelman at Barron's for finding this little nugget of lunacy. There is a website called Benzinga which I will confess that I never heard of before. The website does carry CNBC's Jim Cramer on the home page so I ...
Posted in Uncategorized | Comments Off on From the Deja Vu All Over Again Department
Wednesday, March 19th, 2014
Via David Ader of CRT:
OVERNIGHT FLOWS: Treasuries were little changed overnight as we await the Fed’s announcement later today. Overnight volumes were light with cash trading at 90% of the 10-day moving-average, while TY came in at 75% of norms. 5s were the most active issue, taking a 41% marketshare, ...
Posted in Uncategorized | Comments Off on Overnight Flows