Swap Spreads

November 26th, 2013 2:37 pm | by John Jansen |

This is like Groundhog Day. I could write the same piece I did yesterday. Swap spreads are wider in the belly by about a basis point. There are several reasons all of which I noted yesterday. The capitulation is complete and those with bad trades have ripped up those tickets. Markets are very thin and it does not take much to move spreads. And finally with the holiday upon us swapped issuance should wane and that support for receiving fades. Looking at a chart the next resistance level is around 10 basis points.

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