Thursday, December 16, 2010

Credit Markets

On back of a weak Spanish auction SOVX is 4 wider. The European fins opened 3 wider on Snr and 5 on Sub.  Snr are still 3 wider, but Sub has moved to flat. Feels like people taking off the Snr/Sub trade -- why pay the carry for the next couple weeks? Main and IG are both 1 wider and HY is opening a touch lower. MCDX which had good performance yesterday is also a touch wider this morning. Futures have been bouncing around a little, anywhere from a flat opening to up 0.5%. Treasuries have renewed their sell-off. They are little changed right now, but at one point overnight had been higher. We may get a slight lift at the open, but unless Philly Fed comes in strongly, the rest of the data and Fedex was mixed enough that we will leak lower on the day.

No comments:

Post a Comment