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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (51004)	1/23/2006 4:29:05 PM
From: shades	Respond to of 110194

The facts speak for themselves, all the things that you wrote and don't forget about 43% of first time homebuyers that could not come up with any downpayment. That was a shocker. Right - its their own fault though - they werent born in an america with gauranteed pensions - and then she lashes at me and calls me a failure for living in a small trailer trying to live beneath my means. Confusing. I am a failure because I am not a madonna material girl - strange. DJ US Agencies: Spreads Tighten; FHLB Announces 2-Yr NEW YORK (Dow Jones)--The Federal Home Loan Banking System took advantage of a lull in the agency market supply calendar Monday to announce a new $4 billion two-year global bond. The issue, which matures Feb. 8, 2008, will price sometime later this week. It will be co-lead managed by Citigroup, Merrill Lynch and UBS Securities. Traders said the timing was good, with Fannie Mae and Freddie Mac having just wrapped up their benchmark and reference note funding programs for January last week, and spreads continuing to tighten versus Treasurys. Unlike its two rival housing agencies, the FHLB doesn't schedule debt issuance in advance, prefering to be opportunistic. And in recent weeks, the agency market has demostrated its ability to absorb a large amount of new supply with little impact on spreads. Freddie sold a total of $9 billion of reference notes, tapping the two- and 10-year sectors, while Fannie issued $3 billion of five-year benchmark notes. There are two factors at work, analysts say. One is the continued tightening in the swaps market, which is pulling agency spreads tighter in its wake. The other is the large amount of outstanding agency debt that matures early this year, leaving investors with plenty of cash to invest. "With the heavy volume of agency maturities on tap for the first quarter, and particularly for February, it's hard to call this morning's announcement 'new supply'," said Jim Vogel, executive vice president at FTN Financial Capital Markets. He said any impact from the FHLB's sale on agency spreads is likely to be temporary. The analyst said current price talk on the deal is for a spread of 0.5 basis points to the outstanding Home Loan 4.625% of January 2008, the equivalent of 16 basis points under Libor or 25.5 basis points over Treasurys. RBS Greenwich Capital said price talk on the deal was even tighter at a spread of 24.5 basis points over Treasurys, or roughly 17 basis points under three-month Libor. "We expect strong demand with the curve inverted and foreign interest," agency strategist Margaret Kerins said. Freddie Mac Reference Notes Coupon Maturity Price Over Tsy Change (basis points) (basis points) 4.625% February 2008 26.0 -0.1 .4.750% January 2011 36.1 -0.4 4.750% January 2016 39.1 -0.7 Fannie Mae Benchmark Notes Coupon Maturity Price Over Tsy Change (basis points) (basis points) 4.625% January 2009 24.5 +0.4 4.500% February 2011 35.1 -0.4 4.375% October 2015 33.7 -1.8 Quotes as of 1530 EST -By Allison Bisbey Colter, Dow Jones Newswires; 201-938-5298; allison.bisbey-colter@dowjones.com (END) Dow Jones Newswires January 23, 2006 16:27 ET (21:27 GMT)