Wednesday, November 16, 2016

Corporate Bond Market

US Equity Futures are down to start the day with the DJ Futures -50 and the S&P Futures -7. The global tone is negative with overseas equities mixed through the overnight. Oil is down to $45.20/ barrel and rates are weaker with the 10yr Treasury last at 2.27%. Credit is wider with the Invest Grade Index showing 67.5/68.4 and cash is also weaker.

In credit news, Tuesday’s primary market saw $5.45bn priced in Investment Grade Credit and $1.685bn in High Yield. From yesterday’s deals, we are active in Westpac, Plains All American Pipeline, and 21st Century Fox.  This week is expected to bring $20bn and the monthly consensus for November is $87bn. There is one deal on the calendar for $3.5bn in High Yield from Bombardier. ANZ, HSBC, and BNG are also expected to bring bonds for today’s business.

In economic data, there are a few key announcements scheduled for today. First, Mortgage applications fell 9.2% last week. Following, the US Producer Price Index Final Demand and change in monthly Industrial Production will be reported.