• OTC Derivatives: Is the DTCC Too Big To Fail?
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    02/09/2010 - 08:06
    At our firm we frequently receive calls from clients and readers asking about the likelihood of the passage by the Congress in Washington of reform legislation regarding over-the-counter (OTC) derivatives, financial regulation and/or mortgage securitization. Our answer is small to none given the political trends and the state of the lobbies in Washington, most specifically the large bank lobby that protects the Sell Side monopoly in OTC derivatives and securities. The fact that Senator Richard Shelby (R-AL) is still apparently not comfortable with the entirely watered down House proposal to reform OTC derivatives, for example, tells you all you need to know. Stick a fork in it.
  • The Coming Pan-European Soverign Debt Crisis
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    The levered assets of the banks in many Euro-sovereign nations easily outstrip those nations' GDP's. So when the nations' banks get in trouble from bad banking practices (and a very large swath have), the nations themselves are helpless in attempting to truly save the banks (and instead only institute a bait and switch wherein private default risk/insolvency potential is swapped for public manifestations of the same).
  • NYSE Euronext Announces Trading Volumes for January 2010
    Chopshop
    02/09/2010 - 02:41
    Derivatives trading volumes in January 2010 were stronger, with European derivatives volumes increasing 32.4% and U.S. options trading volumes increasing a whopping 102.4% y/o/y. Cash equities trading volumes were mixed, with European cash transactions increasing 4.1% and U.S. cash equities trading volumes declining 23.7% from Jan '09. Total interest rate products ADV of 2.7 million contracts in January 2010 increased 37.8% from January 2009, and increased 50.5% from December 2009. Total interest rate product ADV is at the highest level since March 2008 !

$12 Billion 30 Year Auction Closes At 4.009% High Yield, 2.37 Bid To Cover

Tyler Durden's picture
Submitted by Tyler Durden on 10/08/2009 12:07 -0500



  • Yields 4.009% vs. Exp. 3.994%
  • Bid To Cover 2.37 vs. Avg. 2.59 (Prev. 2.92)
  • Indirects 34.5% vs. Avg. 48.03% (Prev. 46.7%)
  • Indirect Bid To Cover: 1.51
  • Allotted at high 27.53%
  • 8.5% of accepted to directs

0
Your rating: None

»


by Anonymous
on Thu, 10/08/2009 - 12:12
#93017

The Fed has run out of cash? Interns slept at GS? Is the sky is starting to fall? >4% yield is a big change from the summer theme

by Hephasteus
on Thu, 10/08/2009 - 12:37
#93050

No from what I can tell. The higher the long term bonds ramp up relative to the short term bonds the more likely it is that interest rates on a number of things will have to rise in the future. It has been ramping hard till they took the super short bonds up just a bit in interest.

The bond market always seems to know where the economy is heading. It's like it has access to our bank account information and tax returns. Oh wait. It TOTALLY does.

http://fixedincome.fidelity.com/fi/FIHistoricalYield

by Anonymous
on Thu, 10/08/2009 - 13:11
#93129

excellent link, thank you.

by Bam_Man
on Thu, 10/08/2009 - 12:20
#93026

Evidently the market (bonds) doesn't like these results.

by sleestak
on Thu, 10/08/2009 - 12:25
#93032

Has someone kept trace of the last driblets of above-board QE? What remains that can be used to relieve the dealers of this cusip?

by Icarus
on Thu, 10/08/2009 - 12:47
#93067

$5.6B

It's one of the many, much appreciated things that Tyler does.

http://www.zerohedge.com/article/tiny-13-billion-pomo-done-enough-push-m...

by Rama V
on Thu, 10/08/2009 - 13:57
#93222

Yes, the QE data is much appreciated, and the $5.6B could be completely gone anyday.

by ghostfaceinvestah
on Thu, 10/08/2009 - 14:34
#93286

Yeah, only 20B a week of MBS POMO to go, every week until the end of time.

http://www.ny.frb.org/markets/mbs/

 

 

by Rama V
on Thu, 10/08/2009 - 15:10
#93351

What did the lady say,"During the S&L crisis there were 1000 Federal indictments with only 3000 Savings and Loans."  When will someone indict the writers of the MBS?  Can a democracy do otherwise than reflect the values of its People?

by Cognitive Dissonance
on Thu, 10/08/2009 - 12:40
#93041

What are the lyrics from that old tune?

Slip sliding away.

by Anonymous
on Thu, 10/08/2009 - 12:40
#93053

the nearer your destination...

by Anonymous
on Thu, 10/08/2009 - 12:37
#93049

Fucking thank god. I was bleeding cash on TBT calls.

by Don Smith
on Thu, 10/08/2009 - 12:49
#93072

I don't understand the slip sliding reference or the "bond market doesn't like these results" analysis.  30-yr. is trading in secondary at 3.98, the yield came in at essentially 4.01 versus an expected 4.00, and is trading way above par at 108. 

What part of the results indicates the bond markets portend a dim future?  I'm not being rhetorical, I simply can't read the tea leaves clearly, as I see no particluar doom in this report. 

(BTW, thanks for keepin' 'em coming, TD)

by tradeking13
on Thu, 10/08/2009 - 13:01
#93094

30-Year

CURRENT PRICE/YIELD:  107-20 / 4.06

PRICE/YIELD CHANGE:  -1-00 / .055

TIME:  13:53

by tradeking13
on Thu, 10/08/2009 - 13:14
#93137

Actually,

30-Year

CURRENT PRICE/YIELD:  107-04 / 4.08

PRICE/YIELD CHANGE:  -1-16 / .082

TIME:  14:08

by Don Smith
on Thu, 10/08/2009 - 13:22
#93158

Uh, *gulp*, OIC.  I started writing that post before the parabolic move. 

by Don Smith
on Thu, 10/08/2009 - 13:24
#93160

OK, but wait, isn't this just an example of the Fed failing to tlak down the market enough in advance of this auction?  Stocks are up, so wouldn't we expect treasuries to be down? 

by sleestak
on Thu, 10/08/2009 - 13:26
#93164

Am I being foolish to think that this drubbing of long bonds could be the moment the shorts have been waiting for?

by tradeking13
on Thu, 10/08/2009 - 13:32
#93177

Yes

by sleestak
on Thu, 10/08/2009 - 13:34
#93180

why?  negative real rates are what fuels all. remember the blowout in 5/07 when china stopped buying?

by Cognitive Dissonance
on Thu, 10/08/2009 - 14:04
#93233

Dude, you DO know you're talking to a dog, don't you?

:>)

by cocoablini
on Thu, 10/08/2009 - 16:42
#93502

2.37 ratio? Were we not in the 3's last couple of months? Sounds like a weakening market

by Anonymous
on Thu, 10/08/2009 - 16:51
#93516

More meaningful than the bid to cover is the yield range as you may have a lot of PDs bidding that don't actually want to buy, a 184bp range seems like quite a lot.

by Anonymous
on Thu, 10/08/2009 - 17:55
#93581

http://seekingalpha.com/article/165593-bond-expert-thursday-wrap-things-got-ugly

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