Tuesday, June 28, 2017

Corporate Bond Market

US Equity Futures are off to start the day with the DJ Futures -25 and the S&P Futures -3.50. The global tone is mixed with European equities weaker and Asian equities mixed through the overnight. US Treasuries are weaker with yields on the 10yr last at 2.167% and crude oil is up; last quoted $43.87/barrel. Credit is tighter with the Investment Grade Index showing 42.4/43.7 and cash is also stronger.

In credit news, yesterday’s primary market saw $3.65bn priced from 7 issuers in Investment Grade Credit; June’s tally is up to $72.225bn. 3 deals pried in High Yield for $2bn; YTD issuance totals $138bn. From yesterday’s new deals, we are active in CBS, Sirius, Athene Global Funding and Indiana Michigan Power.

In other corporate news, Google received a record 2.4 billion-euro ($2.7 billion) fine from European Union enforcers who say the search-engine giant tilted marks to prevent smaller shopping search services.  

Municipal Bond Market

Munis finished stronger on Monday as the yield on the 10-year benchmark GO fell one basis point to 1.85%. While there were not any significant deals that priced yesterday, the upcoming calendar is estimated to be at $6.82 billion ($5.16 billion of negotiated deals and $1.66 billion of competitive sales). Today Morgan Stanley will price the Dormitory Authority of the State of New York’s $1.72 billion of general purpose state personal income tax revenue bonds for retail investors in a deal rated Aa1 by Moody’s and AAA by S&P. We will also see Wells Fargo price the Missouri Health and Educational Facilities Authority’s $375 million of taxable educational facilities revenue bonds for the Washington University in a deal rated Aa1 by Moody’s.