Wednesday, February 7, 2018

Good morning-  Global equities are mixed to start this morning after a wild day for stocks. In Europe, the Stoxx 50 is up 26 points, the DAX is up 107 points, and the FTSE is up 47 points. Stocks are ripping higher in Asia as the Nikkei up 240 points and the Hang Seng up 196 points. US equity futures point to a lower opening after the S&P saw its biggest rally since November 2016. The DOW is down 49 points, the S&P is down 7 points, and the NASDAQ is down 9 points. Oil is having another down day and is trading at $63.21. Treasury yields are roughly 2-2.5bps lower across the curve with the 10yr treasury at 2.77%. The Bloomberg Barclays IG OAS credit index backed up to +88 which is only 3bps off decade-long tights. HY has widened since the market sold off as it trades 33bps wider than it did at the end of January. In economic news, we’ll see a full docket of Fed speakers and the U.S. Treasury will conduct a $24 billion 10yr notes auction.