Tuesday, January 17, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -54 and the S&P Futures -9. The global tone is mixed with European equities trading lower and Asian markets stronger through the overnight. Oil is stronger at $53/ barrel and rates are also up with the 10yr Treasury last at 2.347%. Credit is wider with the Invest Grade Index showing 59.2/59.9 and cash is also weaker.

In credit news, last week’s primary market saw $51.8bn priced in Investment Grade Credit and more than $5bn priced in High Yield. There are deals announced from BofAML and Kommunivest on the calendar for today’s business so far.

In economic data, January’s Empire Manufacturing Index will be reported this morning (estimates call for 8.5).  US Equity Futures and European Equities sold off following Britain’s Prime Minister Theresa May’s pledge to pull the nation out of the European Union’s single market while staying inside parts of its customs union. The UK parliament will vote on the final Brexit deal before it comes into power.