Bonds - USD
Spreads are edging tighter as the new issue list starts to fill, including deals from Enel and PIF. Stocks and USTs are in the red, led by the belly.
Talk of 'peak rates' in the wake of the RBA decision and yesterday's ISM data has allowed both duration and stocks to rally.
The biggest move of the last few days in cross-currency bases has been in front-ends, but the real action has been in 10y and longer.
IG supply only saw $1.7bn last week amid the turmoil in the markets. This week expectations are tempered with $10bn expected and $75bn for October.
Gilts and risk-off pressures led by CS are rallying USTs. BofA looks at the possibility that the Fed may have to copy the BOE's recent policy flip.
The BOE may have saved the world but it's not the only interventionist authority around. Banks look at the impact of the BOJ and (perhaps) the PBOC.
Unlike recent gilt moves, a New Year turn collapse today in cross currency first breaks is not unprecedented. But only 2008 surpassed it.
USTs are bull-steepening and spreads are tightening again as gilts stage a partial recovery and cable stabilises. Elsewhere, bears sound less ursine.
Only $6.1bn priced in IG new issuance (ex-SSA) last week, roughly a third of what was expected. Today sees a blank slate thus far.
A record selloff in the front end of the gilt curve provided the backdrop to today’s UST bear-flattening after the UK decided to adopt Reaganomics.