Thursday, August 31, 2017

Good morning—Global equities are mostly higher to start the session while both IG and HY are slightly tighter. European stocks are all in the green with the Euro Stoxx up 23 points, DAX up 65 points, and the FTSE up 44.5 points. Asian markets are quiet with the Nikkei unchanged and the Hang Seng up 3 points. For a second straight day, US stocks are all positive to start this morning. The DOW is up 57 points, S&P up 5.75 points, and the NASDAQ up 11 points. In the IG space, $2.5bn priced Wednesday from two deals. This brings August volume to $112.56bn and YTD volume to $1.14 trillion. The yield on the US 10yr is back down to 2.133% after rising a few bps over night. Today’s economic data includes personal income, spending, and initial jobless claims.

Munis finished flat yesterday as very few deals came to market. The yield on the 10-year benchmark muni GO was unchanged from 1.86% on Wednesday and there are no major deals expected for today and tomorrow. In Puerto Rico, we’re not seeing much activity despite the recent news about the oversight board suing governor Rossello. Yesterday we also saw the Chicago BOE bonds continue to rip higher. With the exception of the Illinois Finance Authority, the Chicago BOE bonds are the most actively traded credits in Illinois.