Monday, March 12, 2018

Good morning-  Most global stocks are continuing to rally this morning as economic optimism trumps trade-war concerns. The Stoxx 50 rose for a sixth straight day and is up 15 points, the DAX is up 82 points, and the FTSE is down 6.5 points. Asian equities were up but are now trading lower as the Nikkei and the Hang Seng are down 60 and 41 points respectively. Right now, the DOW is up 48 points, the S&P is up 5 points, and the NASDAQ is up 26 points. WTI crude is down about 1% to $61.48/bbl after surging with the rest of the market on Friday. With respect to rates, treasury yields are steady as the 10yr UST is 1bp tighter to 2.89%. IG finished the week flat as indices were unchanged or roughly a point wider. According to Trace, volume on Friday hit $17.5bn which was the 13th highest Friday session back to 2005 when the series began. Sprint Spectrum Co are coming to market with a $3.94bn deal split between 7yr and 10yr. Approximately $30bn in IG issuance is expected for the week with today being a viable window given the stable broader market backdrop. Today will be light for economic news but we will see CPI numbers tomorrow.