Bonds - USD
Higher PPI but weaker retail sales left USTs a touch softer and B/Es wider. 3mL popped up but FRA-OIS is stable. Banks look at SOFR swap trading.
IG saw a heady start last week with over $23bn priced in Monday, but the rest of the week fizzled, with $36bn in total. Surveys see a slowdown ahead.
A modest risk-on move has failed to seed USTs move from a very tight range as the market awaits the Fed. SOFR stories are swarming.
The short squeeze has extended today, despite supply and key CPI data this week. Elsewhere, CME is to launch Yield Futures for hedging auctions.
Just shy of $21bn in IG issuance priced last week with financials leaving the biggest footprints. Roughly $30-$35bn in total is expected this week.
Cracks are appearing in the Corona money wall. Central bankers in Australia and the US repo market both point to a possible peak in basis's surge.
Spreads are in a touch while front FRA-OIS widened following a rise in the fix. In the news, IHS Markit launched a new credit sensitive rate, 'CRITR'.
The month of May closed with $136.5bn, bit lower than forecasted. A slowdown is expected in June, with $110bn anticipated.
A late spurt of month-end buying Thursday, rendered this actual month-end session somewhat obsolete. As LIBOR falls, Zoltan speaks. SocGen eyes ASWs.
Treasuries are weaker as Biden prepares a high-spending budget. Banks spot some backdoor QE. A bullet Formosa is upcoming.