Archive for March, 2014

Yield Curve Agonies

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.

Treasury Flow

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.

Rate Guidance

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 ...

More Yield Curve Stuff

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.

Yield Curve Shifts

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.

ObamaCare Premiums to Skyrocket

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 ...

MBS

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 ...

Greek Revival

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 ...

From the Deja Vu All Over Again Department

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 ...

Overnight Flows

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, ...