Corporate Bonds

The corporate bond market had experienced a renaissance or revival of sorts over the last several weeks. The implosion in the CMBS market as well as the persistent weakness in the equity market has drained that sanguine attitude and substituted the melancholic mindset which had prevailed previously.Participants report that there is very little trading. Bid to offer spreads have widened and the little which does trade trades into the bid side.

Some Opening Comments October 7 2008

Prices of Treasury coupon securities have retreated in overnight trading as the gloom and doom which coursed through the veins of the market yesterday has faded somewhat. The worldwide equity rout of yesterday is more of a skirmish today. Most European exchanges are posting gains in the 1 percent to 2 percent area. Australian equities […]

Some Opening Comments October 2 2008

Prices of Treasury coupon securities have, on balance, posted modest gains in overnight trading. The yield curve continues to steepen and the 2 year /10 year spread has reached a local high water mark at 195 basis points. The yield on the 2 year note has declined 4 basis points to 1.78 percent. The yield […]

Some Opening Comments October 1 2008

Prices of Treasury coupon securities have posted solid gains in overnight trading as financial markets remain very volatile. The yield on the benchmark 2 year note has declined 6 basis points to 1.90 percent. The yield on the 5 year note has tumbled 9 basis points to 2.89 percent. The yield on the 10 year […]

Opening Comments September 29 2008

Prices of Treasury coupon securities are surging this morning as the credit crunch metastasizes across the ocean in spite of the agreement by the United States Congress to inject $700 billion into the banking system to purchase debilitated assets.Over the weekend three European governments have intervened to save Fortis Bank. Hypo Real Estate shares tumbles […]

Opening Comments September 25 2008

Prices of Treasury coupon securities have posted bifurcated results in overnight trading as the meandering progress of the bailout package through the labyrinthine legislative process colors trading patterns. President Bush spoke last night and his public commentary added little to our store of knowledge on the topic.However, the Wall Street Journal reports that legislative negotiators […]

Opening Comments September 23 2008

Prices of Treasury coupon securities are posting solid gains in overnight trading and the propensity of the yield curve to steepen which manifested itself yesterday was still evident. The yield on the benchmark 2 year note slipped 8 basis points to 2.04 percent. The yield on the 5 year note dropped 7 basis points to […]

Opening Comments September 22 2008

Prices of Treasury coupon securities have erased some of the outsized losses which resulted from the announcement of the Treasury plan to bailout the financial system with the purchase of illiquid assets from the portfolios of financial institutions. The plan reduced safe have demand for Treasury debt and also raised the specter of huge sales […]

Closing Comments September 19 2008

Prices of Treasury coupon securities plummeted today as the apparent agreement by the Administration and the Congress fostered a flight from Treasury debt to other asset classes. In one day the deepest fear to grip the markets since the Great Depression retreated.The yield on the benchmark 2 year note increased 42 basis points to 2.12 […]

Some Thoughts For September 19 2008

Prices of Treasury coupon securities are, for the most part plummeting in response to the deus ex machina action by the Congress, the Administration and the Federal Reserve to confront the credit crisis with direct, forceful and radical action. As stitched together from various media reports, which I will link to later, the plan has […]

1 2 3