OPTIONS: Expiries for Jun20 NY cut 1000ET (Source DTCC)

• Today's corporate bond issuance likely to be led by Siemens seven-tranche deal: 3Y +65a, 3Y SOFR, 5Y +80a, 7Y +90a, 10Y +100a, 30Y +115a, 40Y +125a.
• Size estimated around $10B-12.5B - similar to Siemens prior seven-parter issued on March 2, 2021:
  • $10B *Siemens: $1.25B 2Y +30, $1.5B 3Y +40, $1B 3Y FRN SOFR+43, $1.75B 5Y +55, $1.25B 7Y +65, $1.75B 10Y +75, $1.5B 20Y +80

Recent flattener crossed at 0900:00ET:

• -5,200 UXYM5 112-01, sell through 112-01.5 post time bid vs.
• +2,500 WNM5 115-27, post time offer

Johnson Redbook's retail sales index posted a 5.4% Y/Y rise in the week ending May 17, which brought May month-to-date to 5.6% Y/Y (above retailers' 5.4% target).

• The report noted that while midweek sales were slow, there was solid shopping on both weekends (Mother's Day May 11, and picking up again last weekend). "Sales of home improvement and outdoor goods increased, although severe storms and flooding in the central USA disrupted business operations."
• In a rare note of caution, "shoppers are becoming more budget-conscious, and retailers are hopeful that sales will strengthen with the arrival of warmer weather, graduations, and the Memorial Day weekend."
• Nonetheless, a 5.6% Y/Y rise would mark the 4th month in a row of 5+% sales, averaging 5.9% over that period. As it accounts for 80% of the Census Bureau Retail Sales series, the latter looks to remain relatively robust this month despite waning consumer confidence.