MBS
Friday, April 4th, 2014Mortgages are about three ticks tighter to Treasuries. There is two way flow from end users and hedge funds are short and covering.
Archive for April, 2014
Mortgages are about three ticks tighter to Treasuries. There is two way flow from end users and hedge funds are short and covering.
Corporate Bonds
Friday, April 4th, 2014Spread continue to tighten in this sector. Spreads are probably one basis point to two basis points tighter. One salesman with whom I converse regularly described the number as financial nirvana for spread product buyers. There is nothing in the data which challenges view that one can still be short ...
Swap Spreads
Friday, April 4th, 2014Swap Spreads are wider in the belly by about 1/2 basis points. Two year spreads and 10 year spreads are unchanged. One trader with whom I spoke noted that the extreme cheapness of 5s and 7s on Treasury curve has led to a narrowing of spreads in those sectors but ...
Post Labor Curvology
Friday, April 4th, 2014The 5 year note is the big winner after labor report. %s 30s has moved from 181.8 to 188. That puts it north of the 187 multi year Maginot Line. The 5s 10s spread has moved from 58.8 to 60.6 . The 2s 5s spread was 133.1 prior to number ...
Treasury Update
Friday, April 4th, 2014I guess everyone has the steepening idea now. Here are some flows I am hearing thus far: hedge fund stopped out of 7s 30s flattener; real money buyers in 5s and fast money buyers of 5s 30s. The curve move is huge as 5s 30s is nearly 188 after printing 181.8 ...
Post Labor Thoughts
Friday, April 4th, 2014I think the number is a push or maybe a tad on the weak side but there is not anything which should make anyone want to race out and do something dramatic. Actually given that there is no smoking gun and given the flattening of the curve prior to release ...
Pre labor Curvology
Friday, April 4th, 2014I just recorded 5s 30s at 181.8. That is as narrow as that spread has been since just before Yellen spoke Monday when it was 180.5. The 10s 30s spread is 82.1 and that is actually a tad flatter than the level which prevailed (82.5) prior to Ms Yellen's Monday ...
Overnight Flows
Friday, April 4th, 2014I regularly post about this time each morning the overnight flow data compiled by David Ader at CRT Capital. I will do that but note that it certainly reflects the very low volume trade overnight as volume was just 61 percent of the day day moving average. Via David Ader and ...
Five Year Note in Spain
Friday, April 4th, 2014Chris Low of FTN Financial observes that the yield on the 5 year in Spain is now below that of the 5 year note in the US. Via Chris Low of FTN Financial: Spanish 5-yr yields are lower than 5-yr UST yields, an extraordinary development considering how high they were in 2010 ...
Mark Chandler on Yen Anniversary
Friday, April 4th, 2014Via Mark Chandler of Brown Brothers: Today is also the first anniversary of the Bank of Japan's "Qualitative and Quantitative Easing" policy. The effectiveness of it remains an open question, although the yen has fallen and the stock market has risen. Most observers, including those Japanese businesses participating in the Tankan ...