Monday, June 5, 2017

Corporate Bond Market

US Equity Futures are down to start the week with the DJ Futures -22 and the S&P Futures -2.75. Overseas equities are mixed through the overnight with majority trading lower. US Treasuries are weaker with yields on the 10yr last at 2.173% and oil is down, last quoted $48.30/barrel. Credit is stronger with the Investment Grade Index showing 42.66/44 and cash is tighter.

In credit news, last week’s primary market saw just short of $30bn priced in Investment Grade Credit. May’s tally reached $181.145bn; $154.095b excluding sovereigns. There was one high yield deal priced in High Yield from Virtu Financial; deal proceeds to finance pending acquisition of KCG Holdings and repay KCG debt. Today is expected to be heavy day in new issuance with new deals announced from: Air Lease, Autodesk, Atmos Energy, San Diego Gas & Electric, National Bank of Canada, TRI Pointe Group, Tenet Healthcare, and GS Caltex.

In economic data, there are a hand full of announcements scheduled for today. First, Nonfarm Productivity was unchanged for Q1 2017. Next, Unit Labor Costs will be reported followed by Markit US Services PMI and Markit US Composite PMI. Also, Labor Market Conditions Index Change will be announced with Factory Orders and Durable/Capital Goods Orders as well.