EM LATAM CREDIT: Argentina: US Trade Deal - Positive
Nov-14 12:59
(ARGENT; Caa1/CCC/CCC+)
"US-Argentina Trade Deal to Be Signed in About 2 Weeks, US Says" - Bbg
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PIPELINE: Corporate Bond Roundup: JPM 3Pt on Tap
Oct-15 12:56
- Date $MM Issuer (Priced *, Launch #)
- 10/15 $Benchmark JPMorgan 6NC5 +90a, 6NC5 SOFR, 11NC10 +100a
- 10/15 $500M Constellation Brands 10Y +125a
- 10/15 $500M MAF 10Y Sukuk +90a
- 10/15 $Benchmark Eversource 5Y +115a, $300M 2035 tap
- $10.6B Priced Tuesday - mostly GS 5-tranche issuance
US DATA: Empire Starts Oct Manufacturing Data On Solid Note (And Firm Prices)
Oct-15 12:51
The NY Fed's Empire State Manufacturing Survey handily beat expectations with a headline General Business Conditions reading of 10.7 in October (-1.8 expected, -8.7 prior), starting the month's regional Fed manufacturing readings on a strong note (albeit accompanied by higher inflation pressures).
- This was the 2nd highest reading since November 2024 and came after an unexpected pullback in September to a 3-month low. It brings the overall reading back into typical mild expansionary territory (5-year lookback z-score of 0.7).
- The subindices were also solid: New Orders to 3.7 after -19.6 prior, Employment to a 3-month high 6.2 after -1.2 prior, and Shipments to 14.4 after -17.3. And there was optimism evident in the 6-month outlook of 30.3, up from 14.8 prior for a 9-month high, with forward-looking expectations for New Orders and Shipments markedly higher.
- Along with the better activity however came stronger price pressures: current prices paid rebounded to 52.4 from 46.1 prior (which had been a 7-month low), with expected prices paid 6-months ahead rising to 65.0 from 57.8 for a fresh 5-month high.
- Notably, current prices received jumped to 27.2 from 21.6 for a 6-month high, suggestive of manufacturers passing along input price increases (6-month-ahead prices received ticked up 0.6 points to 43.7 also for a 6-month high, suggesting those increases are expected to be sustained).
US SWAPS: Long End Spreads Continue To Lead Widening After Powell's QT Comments
Oct-15 12:46
Long end swap spreads continue to lead the move as yesterday’s widening is extended on.
- A reminder that comments from Fed Chair Powell, pointing to potential end to QT in the coming months, drove Tuesday’s widening.
- 5- & 10-Year swap spreads move to fresh multi-month highs but still trade below pre-Liberation Day levels that prevailed in early April.
- Meanwhile, 30-Year spreads trade close to their March closing high (-73.5bp).
- J.P.Morgan recommended unwinding 3-year swap spread wideners following the comments from Fed Chair Powell.
- They noted that “term funding premium is now below our estimate of fair value. We turn neutral on swap spreads”.
