Historic Times

Yesterday the front end of the libor curve moved 40+ basis points. The 2s-30s curve moved 38-40bps depending on who you ask. Since 1982 there have been 37 occaisions of the front of the curve moving 40+bps. 14 of those happened since 1990. The 2s-30s curve has never moved as much as it did yesterday, even when the treasury discontinued the long bond (the 2s-30s curve moved 30bps that day).

Last night Bernake gave a speech that was interpretted to be hawkish. We sold off an additional 20bps from that.

This morning (9am london time) the BBA came out with their anticipated tape bomb (and you thought I was joking when I posted that here: http://getonthedesk.blogspot.com/2008/05/bba.html) saying that they'll add new banks to the libor survey.

We are truly living in historic times. Perhaps the most volatile the markets have seen for two decades.