Tuesday, October 18, 2016

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +86 and the S&P Futures +12.5. The global tone is positive with overseas equities trading higher through the overnight. Oil is up, last at $50.21/ barrel and rates are also stronger with the 10yr Treasury last at 1.756%. Credit is firm with the Invest Grade Index showing 67.64/68.29 and cash is also tighter.

 In credit news, Monday’s primary market saw $8.35bn priced in Investment Grade Credit, bringing October’s tally to $57.105bn. Today will be a decent day in new issuance with deals from:  Bank of America, Wells Fargo, European Investment Bank, Saudi Arabia and a few others on the calendar for today’s business. Volume is for this month is expected to reach $100bn.

In economic data, September’s CPI change has met analysts’ expectations of 0.3% monthly change. Later this morning, October’s NAHM Housing Market Index change will be reported. Finally, August’s Total Net TIC Flows will be announced at market close.