Yesterday's Recap
- Higher Volume Yesterday As MBS Rallied in the AM and Sold In PM
- MBS Selling = profit taking, "snowball," tsy supply rings doorbell
- White House to be Risk Manager In Chief
-Fed said to be "on hold" through 2009 and possibly 2010.
-18 banks downgraded by S&P
- US CPI +0.1% vs. expected +0.3%, YoY -1.3%, largest year over year drop since 1950
-US Q1 Current Account -$101.5bn vs. -$154bn (revised from-$132.8bn)
-US May Oil Demand -4.3%, Gasoline demand +0.6%
-US dollar fell. EUR/USD pair traded to 1.3984
-Gold closed at 938
-NYMEX Crude closed at 71.03
- If you read nothing else this AM, Read AQ's Close Again!!!
The AM So Far...
- Ugly
- Jobless Claims moderate as continuing claims change course. Happy B-day to recovery optimists.
- Philly Fed and LEI to come.
- Geithner on Financial Reform at 930
- Just fell into "MBS Underworld" after hanging on to "The desert" yesterday
- Welcome to 2008 Style Volatility! (is this why it feels like everyone and their brother has suddenly been discussing swaption straddles and strangles?)
- Help may have to wait until FOMC speak soothes
Charts
6/12 EFFECTIVE FED FUNDS: +0.02 to 0.24 from 0.22
LIBOR FIXINGS
O/N LIBOR: +0.0025 to 0.2637 from 0.2612
1 MONTH: +0.0019 to 0.3150 from 0.3131
3 MONTH: -0.0013 to 0.6087 from 0.6100
6 MONTH: +0.0037 to 1.1612 from 1.1575
1 YEAR: -0.0050 to 1.6888 from 1.6938
MBS Market Alerts
