Monday, April 10, 2017

Corporate Bond Market

US Equity Futures are up to start the week with the DJ Futures +15 and the S&P Futures +2.75. The global tone is mixed with overseas equities mixed through the overnight; European equities are trading mixed and Asian equities are weaker. Oil is up, quoted $52. 74/ barrel this morning and treasuries are flat with the 10yr last at 2.382%. Credit is stronger with the Investment Grade Index showing 47.85/49.29 and cash is wider.

In credit news, last week’s primary market saw $29.85bn priced in Investment Grade Credit from 22 issuers, outpacing consensus estimates of $15-$20bn. Last Friday accounted for the lowest Investment Grade Trading Volume of 2017. The outlook for this week is that issuance will be light and front loaded ahead of the holidays and short week. Consensus estimates expect less than $15bn to price. There are deals announced from Tutor Perinin and Cedar Fair for today’s business.

In economic data, US Labor Market Conditions Index Change will be reported this morning.