Good Morning … On Monday, U.K. stocks advanced for the eighth consecutive day, marking their longest winning streak in over a year. U.S. equities were mixed with the S&P setting yet another all-time high closing at 2090.57 meanwhile the DOW shed 15.48 points to close at 18,038.23. Prices on U.S. 10yr treasuries advanced amid the turmoil in Greece pushing yields down throughout the day. On Monday, the benchmark 10yr notes gained 13 ticks to yield 2.20%. Mortgages once again had a fairly quiet session on Monday with originations of just ~$750mm. Demand for MBS was light, as mortgages underperformed vs. swaps. The lack of demand was partly due to the flight to quality (into U.S. Treasuries) trade created by the political and economic issues in Greece. FN 3.5s and 4s were the best performers in the stack finishing the day ~1.375 ticks wider (underperform) to swaps. At the end of the session on Monday, FN 30yr 3.5s closed at ~104-03+ (up 5+ ticks/32), PC 30yr 3.5s closed at ~103-27+( up 6 ticks) and GN 30yr 3.5s closed at ~104-25+ (up 8+ ticks). Euro zone markets are off this morning as investors continue to contemplate the economic and political fate of Greece. This downward move in equities could deliver the first December decline since 2008. Earlier in the session, the Euro touched a two year low of €1.21 to the U.S. Dollar. U.S. equity futures are pointing down this AM on news out of Europe along with some concern related to the falling price of oil and its effect on oil related cyclicals. The U.S. Treasury will sell $30bln of 4-week bills today.
Posted on: Tue, 30 Dec 2014 17:00:08 +0000
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