US: Corporate Credit Update

Investment-grade corporate credit risk climbed higher Wednesday, near session highs in the second half with stocks weaker but off lows.

• Investment grade risk measured by Markit's CDXIG5 index is currently +2.527 at 96.884; CDXHY5 high yield index at 97.829 (-.547).
• Outperforming credit sectors (tighter or least wide): Materials (+0.6), subordinated Financials (+1.1) and Energy (+1.3)
• Lagging sectors (wider or least narrow): Technology and Communication tied at +2.0, Industrials (+1.9), followed by Sr Financials, Consumer Staples and Health Care all clustered around +1.8.

• RES 4: 150.45 3.618 proj of the Aug 2 - 8 - 11 price swing
• RES 3: 150.00 Psychological round number
• RES 2: 149.83 3.50 proj of the Aug 2 - 8 - 11 price swing
• RES 1: 149.79 High Oct 19
• PRICE: 149.73 @ 16:00 BST Oct 19
• SUP 1: 148.19/147.06 Low Oct 18 / 14
• SUP 2: 145.74 20-day EMA
• SUP 3: 144.72/143.53 Low Oct 7 / 5
• SUP 4: 142.53 50-day EMA

USDJPY is holding on to this week’s gains and the uptrend remains intact. Last week's gains resulted in a break of 145.90, the Sep 22 high, confirming a resumption of the primary uptrend. Note too that 147.66, the Aug 1998 high, has been cleared, reinforcing bullish conditions. This has opened 149.83, a Fibonacci projection, ahead of the psychological 150.00 handle. Firm trend support lies at 145.37.

NY Fed reverse repo usage climbs to $2,241.835B w/ 101 counterparties vs. $2,226.725B in the prior session. Prior record high stands at $2,425.910B on Friday, September 30.

NY Federal Reserve/MNI