Monday, October 17, 2016

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -14 and the S&P Futures -1.25. International equity markets are also trading lower through the overnight. Oil is stronger, quoted $50.5/ barrel this morning. Rates are also on the rise with the 10yr Treasury last at 1.785%. Credit is firm with the Investment Grade Index showing 68.057/68.7 and cash is also tighter.

In credit news, last week’s primary market saw just over $31bn priced in new issue Investment Grade Credit and $770mn priced in High Yield Credit. This week is expected to bring between $15-$30bn. Financials will be leading the charge with deals from: Citigroup, JP Morgan, ICBC, and Turkiye Is Bankasi already announced for today’s business.

In economic data, the Empire State Factory Index fell to -6.8 (est. 1, prior -1) this month. Also, September's Monthly Change in Industrial Production was in line with the surveyed estimate of .1%. Last but not least, the monthly growth in US Industrial Production Manufacturing was .2%.