It is quiet. Rates are holding at the top end of the range and the curve is maintaining a steepening bias. Swap spreads have stabilized, the Bund/US spread continues to widen, vol is drifting lower and MBS is widening a smidge. It feels like a whole lot of nothing as...
With an eventful week behind us, it’s time to get ready for some payroll fireworks. The half day Friday should be action packed, and illiquid, as equity markets are shut and bond market are open (something that happens with frequency of a venus transit eclipse). Ward...
Those who know me well know that I disavowed trading LIBOR many years ago. It all stemmed from some experiences in 2007 when I happen to stumble into making a lot of money on some seemingly worthless EDU7 puts. I was quite pessimistic on the economic outlook, but I...
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...
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 yield, with a fiscal nightmare on our hands, will […]
