May 29th, 2009 10:06 am | by John Jansen |

Mortgages are about 6 ticks better to swaps this morning. 

Swap spreads remain in narrowing mode. When i reported on them earlier the dealer with whom I had spoken had noted an absence of  paying and only minimal receiving. That has changed somewhat as participants now report some chunky receiving. It appears to be more fast money and prop types rather than end users.

Vol as measured by the 3 month 10 year ATM straddle is still well bid as that combo is 618 bid. I think when I reported on it yesterday around his time it was 624.

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  1. 6 Responses to “”

  2. By N N on May 29, 2009 | Reply

    Did you guys see the Fat Finger trade on TUU09 this am, around 8:35 am? 12,000 cars or so? Any speculation who it was?

  3. By vol-trader on May 29, 2009 | Reply

    bond futs are trading well here the past 45 minutes or so

  4. By Juan Motime on May 29, 2009 | Reply

    Anyone have an opinion on the chances of Geithner intervening in the FOREX market to prop up the dollar? Either now or in the future?

  5. By Bman on May 29, 2009 | Reply

    I would say if this keeps up next week it could happen – but it won’t be announced. My guess is they come back with the usual rhetoric that “they support a strong dollar, or strong dollar is in our best interests.” I am amazed that equites have held-in so far given what has transpired this week in rates and currency markets.

  6. By In-The-Weeds on May 29, 2009 | Reply

    I’m not too surprised about equities holding in here given the continued bid for US corporate paper this week.

  7. By Gary on May 31, 2009 | Reply

    Geither trying to prop “up” the dollar? This is the same guy who last year joined Paulson in bullying China to increase the yuan?

    China may want to prop up the dollar to protect their imports — but then they also want alternatives to the dollar as a reserve currency.

    Obama’s political base (unions) wants a weak dollar to artificially prop up exports.

    Geithner can tell us to read his lips, but he can’t print money like crazy to bail out failed companies and simultaneously say he wants a stronger dollar… plenty of governments have tried to have their cake and eat it — and every one of them failed

    Geithner has no money to mess with the forex markets. All the money he is using to manipulate bonds is printed.

    Issuing debt with one hand while buying it with the other isn’t fooling anyone outside of Wall Street

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