EU CREDIT UPDATE: CREDIT UPDATE: € Credit Close
Aug-14 15:34
- Bunds drifted wider initially, despite data releases that weren’t impactful, with impending core supply. Slightly softer CPI reversed the move. DBRs / USTs close -1/-3bp.
- Stocks were marginally stronger overnight, with SPX / SXXP +0.1/+0.4% currently. €IG equities are +0.4%, with Utilities lagging at -0.6%. Notable movers include Flutter +10%, Kellanova +8%, UBS +6%, Albemarle -6%, RWE -5%.
- €IG cash closes unchanged. K was 8-13 tighter with the Mars takeover confirmed. GCYGR was 4-6 tighter on 1H results. Nothing from primary.
- CDS closes firmly tighter with Main / XO at 59.3 / 316, -2.2/-9.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS: US TSY 26W BILL AUCTION: HIGH 4.985%(ALLOT 0.01%)
Jul-15 15:32
- US TSY 26W BILL AUCTION: HIGH 4.985%(ALLOT 0.01%)
- US TSY 26W BILL AUCTION: DEALERS TAKE 26.80% OF COMPETITIVES
- US TSY 26W BILL AUCTION: DIRECTS TAKE 7.30% OF COMPETITIVES
- US TSY 26W BILL AUCTION: INDIRECTS TAKE 65.90% OF COMPETITIVES
- US TSY 26W BILL AUCTION: BID/CVR 2.85
US TSYS: US TSY 13W BILL AUCTION: HIGH 5.195%(ALLOT 70.69%)
Jul-15 15:32
- US TSY 13W BILL AUCTION: HIGH 5.195%(ALLOT 70.69%)
- US TSY 13W BILL AUCTION: DEALERS TAKE 44.81% OF COMPETITIVES
- US TSY 13W BILL AUCTION: DIRECTS TAKE 5.18% OF COMPETITIVES
- US TSY 13W BILL AUCTION: INDIRECTS TAKE 50.00% OF COMPETITIVES
- US TSY 13W BILL AUCTION: BID/CVR 2.69
STIR: July Cut Odds Lift With GS Seeing “Solid Rationale” For Move
Jul-15 15:28
- They’re still low at only 3bps but July cut odds have been bolstered by Goldman Sach’s Hatzius seeing a “solid rationale” for a July rate cut, even if he keeps his forecast for a first cut in September.
- Latest labor and inflation data suggest monetary policy rules pointing to 4% rates.
- Rationale for acting in July includes volatility in monthly inflation that “could make a September cut awkward to explain” if there’s a temporary reacceleration, and the “undeniable (if never acknowledged) incentive to avoid initiating cuts in the last two months of a presidential election campaign”.
- September cut pricing has built further, currently at a cumulative 27bp ahead of Powell’s interview by David Rubenstein at 1230ET.
