Wednesday, October 5, 2016

Corporate Bond Market

US Equity Futures are up to start the session with the DJ Futures +47 and the S&P Futures +5.5 after a favorable jobs report. Overseas equities are mixed with Europe trading down and Asia trading up. Oil is stronger, last at $49.57/ barrel and rates are unchanged with the 10yr Treasury last at 1.686%. Credit is firm with the Invest Grade Index showing 68.26/68.86 and cash is also stronger.

In credit news, Tuesday’s primary market was quiet. We are expecting some more volume in issuance for today. There are deals from: Dynegy, MTN Group, World Bank, Eurochem, Pakistan, and Japan International set to price today.

In economic data, there are a few key announcements scheduled for today. First, ADP’s Monthly Employment Change has reported an additional 154,000 jobs for September. Next, the US Trade Balance widened 3% in August, tallying $40.7bn. Finally, MBA Mortgage Applications grew 2.9% last week.