Thursday, November 10, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +91 and the S&P Futures +10. The global tone is positive with the exception of Mexico and Hong Kong as overseas equities traded higher through the overnight. Oil is down to $44.78/ barrel and rates are weaker with the 10yr Treasury last at 2.1%. Credit is firm with the Invest Grade Index showing 65.9/66.7 and cash is also tighter.

In the news, yesterday saw the biggest selloff in US Treasuries in years while stocks and gold surged higher after news of the Trump victory in the presidential election.

In credit news, spreads are tightening and issuance will be restored by Con Ed, Goldman Sachs, CF Industries, and Virginia Electric & Power following a quiet few days ahead in the primary market.

In economic data, Jobless Claims fell 11,000 last week. Later this afternoon, October’s Monthly Budget Statement will be reported.