Swaps - USD
Equities are in the red but USTs are only mildly enthused as participants await the FOMC decision and a 7-Eleven jumbo deal. SocGen previews FOMC.
S&P futures are down as some of the froth blows off risky assets, GME excepted. Ahead, the FOMC meeting is widely expected to be uneventful.
The $61bn 5y saw a decent reception, though not as enthusiastic as the 2y. Swap spreads came off intraday wides as long positions took chips off.
Better corporate earning/outlooks are buoying the risk tone today with USTs under modest pressure as a result. SocGen previews the 5y UST auction.
With cessation news on LIBOR awaited, the UK FCA has updated the market on its view of the process and CCPs have implemented ISDA's protocol.
The UK FCA's Schooling Latter discusses LIBOR fallbacks and synthetic LIBOR in a wide-ranging speech today.
The first leg of the week's refunding, $60bn 2y, was gobbled up. Swap spreads leaked wider still amid mostly lower volumes. JPM examines BSBY.
$25.85bn in new IG supply came as domestic FIG issuance came post-earnings. January needs $15bn more to level with expectations for the month.
President Biden will start to piece his 100 day stimulus drive and assault on corona this week. And the wait has begun for LIBOR cessation details.
USTs are bull flattening despite a pairing of earlier losses in equities. Barclays sees LDI demand for USTs increasing.