I generally do not comment much on swap spreads as we at Jefferies are only involved in trading instruments with cusips (something I am quite pleased about). That said, the moves in swaps are going to feedback into MBS market valuation and also provide some insight...
It’s a quiet start to a front end auction week, with the curve recovering a tad from last week’s hangover. I think the “reach for yield argument” discussed in last Friday’s comment provides the best rationale for why we have seen the flattening. But reaching for...
The inflation data and the FOMC were unequivocally dovish. The long end traded in sync with these results with 30s up 23 ticks on the week. The short end, however, marched to different tune with 2s down 1 tick on the week. I do not believe the discount rate rumors are...
There is little to talk about before 2:15 so I’ll keep this brief. The key focus for the market is on a Bullard (and possibly a Warsh) dissent. I think these are very remote possibilities. Let’s start with Bullard - he has been talking about a recovery that is “on...
There is little to talk about before 2:15 so I’ll keep this brief. The key focus for the market is on a Bullard (and possibly a Warsh) dissent. I think these are very remote possibilities. Let’s start with Bullard - he has been talking about a recovery that is “on track” in his recent presentations […]
