ITC Markets- opening calls

Discussion in 'Index Futures' started by dfuller33, Feb 13, 2008.

  1. 06:31 ITC_Markets1 Good Morning--- UST yields rose after billionaire investor Warren Buffet expressed interest in some of the businesses of the monoline insurers, (municipals, specifically), and the equity market rallied. However, Ambac, one of the monoline insurers, fell over 10% y'day suggesting that Buffet’s interest in the most stable parts of these firms operations was not necessarily viewed positively by investors. USTs plunged on the initial Buffet headlines, and we heard very good FM selling of 2s 5s and 10s on the way down. Mortgage and FM accounts were buyers in the NY afternoon rally, which coincided with equity market selloff from the highs, and futures contracts also traded well late into the CBOT close. WE ALSO SPIKED in 2s on news/talk of failed auction-rate sales (muni debt). In Tokyo, USTs are higher with the street long and there's been talk of decent Japanese RM buying of USTs and European Govies, esp in 7yr sector . EGBs should open higher in line with USTs. Bunds may be capped in the very short-term into Bund supply at 10.00GMT. This will be the second and final tap of this ten-year benchmark which will take the total notional outstanding to EUR 20bn. This week, given the recent steepening of the yield curve, desks' expect considerably better auction with a b/c ratio above 1.6. France's 15Yr OATi for at least Eur5.0bn is also expected to see allocations/pricing over the course of the moning after books closed at 17.00GMT Tuesday in excess of Eur6.0bn.
    06:31 ITC_Markets1 Bunds to open around 116.97, Bobls at 111.43, Schatz at 105.02.

    06:34 ITC_Markets1 (file) story.txt (2.7 K) USTs spiked y'day- Heard rumors of bank portfolio selling assets at 20 cents on the dollar, as well as another failed ARS auction. FM buying 2s and 5s >>

    06:51 ITC_Markets1 Japan-FSA are supposed to be announcing sub-prime losses 4pm---on Japanese banks (in 7 mins time)