Tuesday, June 6, 2017

Corporate Bond Market
US Equity Futures are weak to start the session with the DJ Futures -48 and the S&P Futures -6. The global tone is negative with overseas equities trading lower through the overnight. US Treasuries are rallying with yields on the 10yr last at 2.136% and oil is down, last quoted $47.33/barrel. Credit is weaker with the Investment Grade Index showing 43/44.33 and cash is wider.

In credit news, Monday’s primary market saw $7.85bn priced in Investment Grade Credit. June’s tally is at $24.45bn. From yesterday’s new deals, we active in: Air Lease, Autodesk, Atmos Energy, Dr Pepper Snapple, Nokia, National Bank of Canada and San Diego G & E. There is a deal announced from Sempra Energy for today’s business.

In economic data, April’s Job Openings will be reported this morning.

Municipal Bond Market
Munis finished Monday mostly unchanged as traders waited for $7.8 bn of new supply to come to market. The yield on the 10-year benchmark GO was flat from 1.86% on Friday despite yields on the 10-year Treasury rising to 2.18% from 2.16%. Today we will see RBC Capital Markets price the Metropolitan Washington Airports Authority’s $533.79 million of airport system revenue refunding bonds in a deal rated Aa3 by Moody’s and AA-minus by S&P and Fitch. Barclays Capital is also set to price the East Bay Municipal Utility District, Calif.’s $453.84 million of water system revenue green bonds and refunding bonds in a deal rated Aa1 by Moody’s, AAA by S&P, and AA-plus by Fitch. Last but not least, we will see Siebert Cisneros Shank price the city of Chicago’s $399.71 million of project and refunding wastewater transmission revenue bonds in a deal rated A by S&P and AA-minus by Fitch.