Tuesday, August 8, 2017

Good Morning – Global equity markets are mostly negative to start this morning. Gold is up and the Euro is extending its gains as European stocks pare early session losses. In Asia, we’re seeing the HANG SENG -9 points, NIKKEI -20 points, and CSI 300 -2 points. Right now, both Asian and European credit spreads are slightly tighter.

Stock-index futures in the US are slightly lower to start the morning with the DOW -21 points & S&P -4 points. UST yield curve is unchanged with the 10yr at 2.262% and the 30yr at 2.845% ahead of today’s $24b 3y notes auction. USD swap spreads ended tighter across the curve with the 30Y tenor down around 0.8 bps. Corporate spreads will be opening wider by 1.4 bps as 14 deals priced yesterday for a total of $14.675 bn. In the high yield space, there are 6 deals on the calendar including Tesla and Parexel.

In Economic news, no relevant data is scheduled for today.

In the muni world, top notch municipal bonds finished mixed as the Cleveland Clinic Health System Obligated Group dominated headlines. JP Morgan priced $824.23 million of Series 2017A tax-exempt hospital refunding revenue bonds in a deal rated Aa2 by Moody’s. The bonds were priced for retail as 3’s to yield from 0.96% in 2019 to 5’s yielding 3.42% in 2039. A 2043 term bond was priced as 4’s to yield 3.50%.