Everyone is talking about worries over inflation, but it seems that the worries are over liquidity problems. The very strong short covering in the...
So this is what PIMCO is doing. What do they say? Q: How are these primary conclusions from the Secular Forum influencing PIMCO's overall...
If you want to play a "flight to quality" spread bet on the side you could go long ZT and short EDU7. I think that would be a proxy for 2yr swap...
The credit-derivatives market now is considerably larger than the market for cash bonds, and that makes it much easier to alter positions or...
It seems like forever since flight to quality actually mattered, but bonds appear to be picking up a bid from stock market weakness. Maybe this...
Actually the company was Delphi, not GM - sorry:). But they say if GM did declare bankruptcy there could be a similar situation with not enough...
One rather eerie parallel is popularity of derivatives. Remember, in a vastly smaller cash market than today, there was SPX futures and OEX...
I tend to think that the lack of vol and stable swap spreads is due to the fall-off in ABS issuance. The issuers are the primary players in...
hey mcurto: Looks like the bonds are picking up a bid on fears about emerging market contagion. Are you seeing this?
Tony Notice that the Bund is holding a little better today. One advantage of the bund is the implicit short dollar position (assuming you keep...
My bet is that the buying in the short-end is reflective of steepeners being put on. Found it very interesting that 10yr JGB have approached 2% -...
The payrolls number will probably get revised over the next few months, so it may or may not be the start of a trend. What this number does do is...
It would appear that the lack of a strong vol bid/continued tight swap spreads during this sell-off, reflects the sharp contraction in mortgage...
Todayâs auction of 5s was just as dismal as the previous auctions this week. It really looks like the Foreign banks are on a buyers strike. If...
Interesting TIP auction: Dealers took down a whopping 64% of the 5yr issue, last year they only took down 36% of the same issue. It would appear...
hey mcurto- Curious to know if the dealers are hedged well for the $47B in supply over next 3 days. Are they prepared to eat a good chunk of...
The problem with attempting to slow down the economy is that monetary policy is a blunt instrument (more like a butter knife than a scalpel)....
I think we may have the most dovish FOMC ever! Greenspan had some 50bp cuts in rates during the move to 1%. Yet the increase to 5% has been in...
It is interesting that there is lots of chatter from Wall Street about the Fed stopping rate hikes later this year, but no discussion of whether...
It does look like treasuries could be in a downside break-out. When SPX is down a percent (while not a 3 sigma move, it does seem strong by recent...
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