The market responded well to today's Treasury auction. Bid to cover was 2.26 with a high yield of 3.3% and indirect bidders representing 33%.
As a side note, senior tranches of CMBS (commercial mortgage backed securities) are now back to trading around 800 basis points above swaps due to ratings agencies stating that they will not retain their AAA rating and therefore will not be allowed to participate in the TALF program.
Homebuilders are getting slammed today. Gold is trading strong along with oil. Piggies (banks) are strong and high beta is leading the charge.
Heading into the final hour. Good luck.
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