Closing Thoughts June 30 2008

June 30th, 2008 3:51 pm | by John Jansen |

Prices of Treasury coupon securities exhibited very little movement today in a listless quarter end trading session. The yield on the benchmark 2 year note is unchanged at 2.63 percent. The yield on the 5 year note has declined by one basis point to 3.34 percent. The yield on the 10 year note has increased by 1 basis point to 3.98 percent. The yield on the Long Bond climbed by a similar amount and it yields 4.53 percent.The 2year/10 year spread is wider by a basis point at 135 basis points.

The 2year/ 5year/30 year spread is 48 basis points.

Mortgages were 6 ticks tighter to swaps at one point during the day but are closing about unchanged. Apathy won the day. My main correspondent in this sector could not identify a particularly large trade or flows as the proximate cause of the spread erosion.

Agency spreads were unchanged in the 5year sector and 10 year sector but 1 ½ basis points tighter in the 2 year sector. Home Loan announced $4billion 3year notes and $1billion 10 year notes which will price later in the week.

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