Swaps - USD
Despite a modest risk-on move, the belly of the UST curve is pushing higher. More record-setting IG issuance floods in. SocGen analyzes the curve.
Bases are tighter led by cross currency as the Fed announces a new central bank repo facility. New issues gush. Brevan is up again.
Swap spreads have lifted as abundant paying boosting the 10y spread to +1bps intraday. JPM and others view CPFF start will signal LIBOR's trend lower
$109bn priced in IG new issuance last week, a record for a week, sending March to a whopping $210bn. Sources see more flows ahead but slowing.
The 10y sector outperformed during a mildly risk-off start to the week. Deutsche and Citi both eye FRA-OIS.
USTs are bull flattening further as equities sink. Swap spreads are wider with rate lock paying cited ahead of more IG issuance.
The standout move amid another bullish session for fixed income was once again the unstoppable rise of 3m LIBOR. Or is it?
Risk-on ruled the day as fiscal stimulus inched closer to fruition, leaving both stocks and USTs higher. A flood of IS issuance pressured spreads.
The equity markets are fired up to start and issuance is flooding back in, building on last two days of growing optimism and positive tone.
Equities were robust until a drop at the end, while UST's earlier strong bull flattening subsumed into a bull steepening. Spreads see paying flows.