Wednesday, February 1, 2017

Corporate Bond Market

US Equity Futures are up to start the day with the DJ Futures +49 and the S&P Futures +5.25. Overseas equities are strong through the overnight. Oil is up to $53.16/ barrel and rates are weaker with the 10yr Treasury last at 2.472%. Credit is firm with the Invest Grade Index showing 58.87/59.53 and cash is also tighter.

In credit news, yesterday’s primary market saw $10bn priced in Investment Grade Credit from AT&T. In the High Yield space, Mercer International priced a $225m deal. January’s issuance tallied $227.45bn in Investment Grade and just over $19bn in High Yield. There are a few deals on the calendar for today’s business from Ontario, Ferroglobe, and Entre Rios. In addition, Scientific Games Corp is expecting to add $1b to 7% Sr Sec Notes 2022.

In economic data, there are a handful of key announcements scheduled for today. First, MBA Mortgage Applications fell 3.2% last week and US Employment Report crushed expectations by adding a total of 246,000 jobs in January (estimate was 168,000 jobs). Following, the Markit US Manufacturing PMI and ISM Manufacturing PMI will be reported later this morning. At 2PM, the FOMC Fed Funds Target Rate Decision will be announced.