PIPELINE: Corporate Bond Issuance Update: Penske, PNC Join List

Late on Friday J.P.Morgan recommended adding longs in 2s.

• They reasoned that “despite the hawkish Fed outcome, it’s clear the reaction function skews dovishly, as the two choices in front of the central bank are either to continue to lower rates, albeit at a slower pace, or hold”
• “Accordingly, we think markets will continue to price in easing, and this should act as an anchor for the front end. Against this backdrop, valuations appear attractive: front-end yields have retraced to their highest levels since midyear and are pricing in a minimal amount of easing over the next 1- to 2 years”

• US President-elect Donald Trump delivered a wide-ranging 90-minute speech in Phoenix, Arizona on Sunday, doubling down on a new threat to bring the Panama Canal back under US control.
• Trump suggested he could meet with Russian President Vladimir Putin shortly after assuming office on January 20, repeating that resolving the war in Ukraine is “one of the things I want to do quickly.”
• Trump announced another round of executive branch nominations, including Stephen Miran to chair the Council of Economic Advisers – a three-member panel that advises the president on economic policy.
• Trump nominated Stephen Feinberg as Deputy Secretary of Defense and Elbridge Colby to serve as Under Secretary of Defense for Policy. Colby, a prominent China hawk, is likely to advocate Trump dedicate more military resources to the Indo-Pacific and lean on European powers to step up defence commitments.
• Rep. French Hill (R-AK), the incoming Chair of the House Financial Services Committee has been, “pushing for innovation in the banking sector for nearly half a century.”
• The Biden administration has scrapped plans for a mass cancellation of student debt, with Education Secretary Miguel Cardona acknowledging, “uncertainty around the implementation” of the proposals.
• The Biden administration has launched an investigation into Chinese-made "legacy" semiconductors that could result in additional tariffs on mature-technology chips.
• Poll of the Day: Swing-state voters have positive expectations about how a Trump presidency could affect their personal finances. 

Full article: US Daily Brief

• Secured Overnight Financing Rate (SOFR): 4.30% (+0.00), volume: $2.330T
• Broad General Collateral Rate (BGCR): 4.28% (+0.02), volume: $849B
• Tri-Party General Collateral Rate (TGCR): 4.28% (+0.02), volume: $817B
• (rate, volume levels reflect prior session)