Fixed Income Recap

Treasuries
The two-year finished the day unchanged, and the ten-year was higher by 1/32 on index buying despite the decent rally in stocks. The benchmark curve was unchanged on the day, and remains at +186 bps. A basis point represents .01%.

MBS
Agency MBS continued to lag today, widening 3 basis points to comparable Treasuries. Higher coupon pools outperformed lower coupons considerably and as the duration continues to creep lower on 5.5% and 6% pools, the comparison is almost becoming inappropriate.

Treasury Purchases by the Fed
No purchases were scheduled for today. The Fed will be bidding to buy notes in the 3-4 year space tomorrow and 4-6 year space on Thursday.

Links
AIG’s Gift

Have a great evening.

Cliff J. Reynolds Jr.
Junior Analyst