Friday, March 9, 2018

Good morning-  Global stocks are surging this morning on the back of a stellar US jobs report. In Europe, the Stoxx 50 is up 15 points, the DAX is up 20.5 points, and the FTSE is up 17.5 points. In Asia, the Nikkei and the Hang Seng are up 230 and 177 points respectively. Right now, the DOW up 180 points, the S&P is up 17 points, and the NASDAQ is up 48  points. WTI crude is trading 0.83¢ to $60.94/bbl. With respect to rates, treasury yields are roughly 2-4bps higher across the curve in steepening fashion pushing the 10yr UST towards 2.9%. IG issuance has been heating up as this week’s total reaches nearly $50bn which is already the highest of the year. Today’s deals have tightened under 15bps as credit indices hold firm. It is worth noting that the change in nonfarm payrolls was 313K compared to an estimate of 205K. Furthermore, labor force participation is up 0.3% to 63% and the unemployment rate is unchanged from the prior reading of 4.1%.