Wednesday, March 1, 2017

Corporate Bond Market

US Equity Futures are strong to start the session with the DJ Futures +109 and the S&P Futures +13.50. The global tone is positive with European and Asian Equities trading higher through the overnight. Oil is up to 54.16/ barrel and rates are weaker with the 10yr Treasury last at 2.428%. Credit is stronger with the Invest Grade Index showing 53.60/54.14 and cash is tighter.

In credit news, yesterday’s primary market saw about $13bn priced in Investment Grade Credit bringing the new issue tally to $115.375bn for the month. February’s High Yield issuance was $20.05bn. From yesterday’s issuance, we are active in: Georgia Power, American Express, JNJ, and Chevron. There are new deals announced from: Macquarie Bank, Bank of Nova Scotia, Vermillion Energy, Air Lease, Blueline Rental, and Oman on the calendar for today’s business. On the earnings front; Lowes, Best Buy, Dollar Tree, and Mylan reported Q4 2016 earnings that outperformed analysts’ expectations.

In economic data, there are a couple of announcements scheduled for today. First, Mortgage Applications grew 5.8% last week. Personal Income grew 0.4% in January outperforming survey estimates of 0.3% and Personal Spending grew less than expected at 0.2%. Later today, US Manufacturing PMI will be reported along with the change in monthly Construction Spending.