Thursday, October 27, 2016

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +38 and the S&P Futures +7.75. Overseas equities are mixed through the overnight. Oil is stronger, last at $49.35/ barrel and rates are weaker with the 10yr Treasury last at 1.823%. Credit is firm with the Invest Grade Index showing 67.4/68.1 and cash is also tighter.

In credit news, October’s primary market has seen $132.155bn priced in Investment Grade Credit with more issuance on the calendar for today. The weekly tally is now at $26.5bn. Danone led yesterday’s charge with their $5.5bn 4-part deal. We are expecting deals from: Sirius, Buckeye Partners, Credit Bank of Moscow, United Technologies, JBIC, and OKB for today’s business.

In economic data, US Initial Jobless Claims fell 3,000 last week for the first time in 3 weeks. Also, September’s tally of non-defense capital goods orders fell 1.2% (biggest drop since Feb).