Thoughts on today.
- Today is a classic flight-to-quality pattern, where the curve steepens tremendously and anyone who doesn't control printing of US Dollars is lagging the Treasury market.
- I heard it was one of the most busy mornings in 10-years at large dealer desks.
- I'd say bid/ask spreads were widening, but that implies that there is a bid.
- CDX-HY (a basket CDS contract on a series of high-yield names) 30+ bps wider TODAY. Here is the graph through yesterday.
- I'm wondering if I'll have to repost this piece from 2/27 before the day is done.
- I'm busy playing liquidity provider today, but only on very very very high quality stuff. I might be the only one bidding.