Thursday, December 15, 2016

Corporate Bond Market

US Equity Futures are mixed to start the session with the DJ Futures +12 and the S&P Futures -1. Overseas equities are mixed through the overnight with the exception. Oil is up to $51.09/ barrel and rates are weaker with the 10yr Treasury last at 2.615%. Credit is wider with the Invest Grade Index showing 62.45/62.872 and cash is also weaker.

In credit news, Wednesday’s primary market was quiet as the Fed meeting loomed. There was $1bn priced in High Yield credit yesterday and nothing in Investment Grade. December’s Investment Grade tally is $43.725bn with $48bn expected. There are new deals from: Gulfport Energy, Cincinnati Bell, Open Text, and Tesoro on the calendar for today.

In economic data, the Fed raised short term rates by .25% yesterday and hinted at 3 more possible rate hikes in 2017. Moving to today, there are a few key announcements scheduled. First, The US Q3 Current Account Balance will be reported followed by Novembers CPI and Jobless Claims.