CROSS ASSET: Bid In Bonds Extends, SOFR Options Flow Hedges Risk Of 50bp Sep Cut
Pullbacks from session highs in e-minis and crude oil futures seem to promote an extension of the ra...
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PIPELINE: Corporate Bond Roundup: Macy's, Boots, Kioxia on Tap
- Date $MM Issuer (Priced *, Launch #)
- 07/14 $1.5B Kioxia Holdings 5NC2, 8NC3
- 07/14 $500M Macy's 8NC3
- 07/14 $500M Boots Group 7NC3 (in addition to GBP & EUR issuance)
- 07/14 $Benchmark Athene Global 5Y +125a
- 07/14 $Benchmark Aircastle 5Y +150a
- 07/14 $Benchmark Conagra investor calls
- 07/11 No new US$ Corporate bond issuance Friday, $45.7B total on the week
OPTIONS: Larger FX Option Pipeline
- EUR/USD: Jul16 $1.1600-05(E1.0bln), $1.1750(E1.0bln), $1.1795-00(E998mln); Jul17 $1.1500(E1.6bln), $1.1585-00(E1.2bln), $1.1700(E1.4bln), $1.1750-70(E1.4bln); Jul18 $1.1600(E1.4bln), $1.1700(E1.3bln), $1.1850(E1.2bln)
- USD/JPY: Jul16 Y146.50($1.4bln); Jul17 Y148.95-00($1.5bln)
- GBP/USD: Jul17 $1.3445-60(Gbp900mln)
EQUITIES: Indices Open Flat-to-Lower, Trump Russia Statement Next Focus
US indices start mixed-to-flat, with an early fade in tech names swiftly reversed in the opening minutes (E-mini S&P, NASDAQ, DJIA futures lower by 0.1-0.2%). The quiet calendar and smooth absorption of EU, Mexico tariff threats may suggest markets see a decent chance of a modification or moderation in Trump's tariff pledge over the weekend. Recall last week's reports that EU ministers had been scrambled for a possible announcement on US trade, suggesting negotiating teams are well advanced in talks.
Technically, the trend condition in S&P E-Minis remains bullish. The recent rally resulted in a break of key resistance and the bull trigger at 6277.50, the Feb 21 high. Sights are on 6356.12, a Fibonacci projection.
With the data schedule light Monday, near-term focus shifts to Trump's 'Major statement' on Russia, the US CPI print tomorrow (which may finally rule out a Fed rate cut at the July meeting) and the beginning of earnings season. 9.4% of the S&P 500's market cap is set to report this week, with the usual early focus on big banks and financials. Highlights are:
- TUES: JP Morgan, Citigroup, BNY Mellon, Wells Fargo, Blackrock
- WEDS: Johnson & Johnson, Bank of America, Morgan Stanley, Goldman Sachs
- THURS: General Electric, Netflix, PepsiCo
- FRI: American Express, 3M, Charles Schwab
Our full quarterly earnings schedule found here, including EPS, revenue expectations and full timings: https://mni.marketnews.com/44tWRA8
