As of 7:57AM New York time the CDS on FNMA and Freddie Mac paper were quoted as follows:The senior debt is quoted 75/80 which is about unchanged from the close.
The subordinated debt is quoted 270/290. That is about 20 basis points wider.
Additionally , the CDS on Lehman Brothers is wider by 30 basis points at 355/375
As of 9:26: CDS on the subordinated debt of FNMA and Freddie Mac were originally trading 20 basis points wider than the previous close at 270/290. That paper has now joined the perverse party and is 235/245 which makes it 15 basis points tighter on the day.
As of 10:19: CDS on senior paper of FNMA and Freddie MAC gapping tighter. They are now 42/47 which makes them about 35 tighter on the day.
Benchmark debt issued by the agencies is gapping tighter. Most paper is 15 basis points to 20 basis points tighter as participants assume that this paper will have something more than the current implicit gurantee. Traders are very busy so it is tough to have a detailed conversation. The 10 year Freddie Mac specifically is tighter by 20 basis points.
i see no reason to write until after Paulson speaks. i will return then.
As I gather more info and my sources become less frantic, I will update you.