Bond Expert: Monday Wrap

Aug.31.09 | About: Republic Services, (RSG)

More to come, but meanwhile...

Corporate bonds are virtually unchanged in a day of quiet trading.

There was one new issue from Republic Services (NYSE:RSG), a trash hauler. That entity was hoping to sell $500 million 10 year notes around 225 basis points cheap to the 10 year note.

Swaps, MBS and Vol

(2:30PM ET) Swap spreads are tighter across the curve today. Two year spreads are one basis point tighter at 34 1/2. Three year spreads are 2 basis points tighter at 46 3/4. Five year spreads are 1 1/2 basis points tighter at 36. Seven year spreads have tightened 2 basis points to 19. Ten year spreads are 2 1/2 basis points tighter at 20 1/2. Thirty year spreads are 3 basis points narrower at NEGATIVE 11 1/2.

Mortgages are about a tick tighter to swaps.

The three month / ten year ATM swaption straddle is 525 basis points.