Wednesday, April 12, 2017

Corporate Bond Market

US Equity Futures are slightly lower to start the session with the S&P Futures -3.5 and the DJ Futures -14. Global  equities are mixed as of now with no index significantly moving. Both treasuries and oil are mostly unchanged. WTI Crude is quoted $53.64/ barrel this morning and the 10yr  is hovering around 2.3%. The 10 yr hasn’t traded below 2.3% since November. Credit is wider this morning with the Investment Grade Index showing 49.196/50.654 and cash is slightly tighter.

Yesterday’s primary market for Investment Grade saw $6bn priced from 4 issuers across 9 tranches. This brings April’s volume to $39.85bn and YTD volume to $550.225bn. KazMunayGas issued $2.75bn with Toyota right behind them at $2.25bn. From the new deals, we are active in Toyota and Phillips 66. Today is expected to be another light day with deals announced from Saudi and Daiwa Securities.

In economic data, the monthly budget statement came in at -$169bn compared to February’s -$108bn. Aside from that, we saw MBA mortgage applications come in at 1.5% compared to -1.6% previously.