Wednesday, October 19, 2016

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +30 and the S&P Futures +3. The global tone is mixed with overseas equities mixed the overnight. Oil is up, last at $51/ barrel and rates are weaker with the 10yr Treasury last at 1.761%. Credit is firm with the Invest Grade Index showing 67.43/68.07 and cash is also tighter.

In credit news, this yesterday’s primary market saw just short of $13bn priced in Investment Grade Credit, bringing October’s tally to $59.955bn. Today will be a big day in new issuance with deals from:  Saudi Arabia, UPS, Wells Fargo, Mondelez 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 US Housing Starts fell from August and Mortgage Applications grew 0.6% last week.