Bonds - USD
Just over $31bn priced in the IG new issues market, headlined by Carrier’s jumbo M&A deal. Roughly $28bn is expected this week.
The UST market is struggling to sell-off on yet another Friday that doesn’t seem to lend itself to a ‘risk-on’ move ahead of the weekend.
Supply and viral fatigue weighed on haven assets. FRA-OIS spreads stabilized after recent tightening. Heavy Formosa issuance continued.
Just over $22bn priced in IG new issues last week (ex-SSA). The markets remain supportive for supply. Today's calendar is off to a solid start.
New deals include issues from Wells Fargo, SBB and Intermediate Capital. Ahead, a sprinkling of roadshows are on the calendar including Dow Chemical.
A new 20y UST will arrive in May as supported by dealers at the TBAC. Viral fatigue, strong ADP data and vaccine hopes have pushed the 10y to 1.65%
The unwind in haven assets has extended with most of the Treasury curve higher as risk assets bounce. Ahead, some banks see 10y yields rising further.
$11.65bn priced in IG new issues (ex-SSA) last week amid delicate conditions. January ended with $140bn and surveys expect just under $100bn for Feb.
Just under $26bn priced in IG last week, bringing the MTD total to over $128bn, topping expectations. However, virus fears have put supply on hold.
The expansion of the corona virus continues to support haven assets. Treasury prepares to sell a new 10y TIPS. Banks look at plans for a 20y.