Bonds - USD
The 2nd largest bank deal - BofA's $8.5bn 5-part - boosted a lackluster week of issuance. Lower volumes are expected this week.
A barrage of USD issues from big EUR funders left as quickly as it arrived as SURE supply in EUR looms. China sold its first 144a in 24 years.
The prospect of unified EU SURE bond issuance in the EUR market saw SSAs scuttle to raise USD funding today.
Just shy of $26bn priced in IG new issues last week and strong deal metrics underscored that investor demand is outstripping supply.
There was something for every kind of bull today as stimulus hopes saw Dow futures rally, while the usual woes support bonds. SOFR USTs are eyed.
With the big issuance guns having rolled in and out of core markets in Sep, basis swaps were stable. Sweden sent out mixed messages and HONIA arrives.
$18.75bn priced last week, with September and Q3 both breaking records. This week, month and Q4 are all expected to see lower volumes ahead.
Basis: Canny borrowers dodge spikes; SOFR basis update
Cross-currency basis swappers were unruffled by moves in their market today despite fairly sharp moves in first breaks due to the year-end turn.
Q3 2020 topped $360bn, a new record. September is $8bn shy of a new record. But IG tangled with weaker equities and outlook ahead is more subdued.