US TSYS: Late SOFR/Treasury Option Roundup: Heavy Volumes, Rate Cut Pricing Ebbs

• RES 4: 186.62 Bull channel top drawn from the Feb 28 low 
• RES 3: 185.77 2.5000 proj of the Jul 31 - Sep 29 - Oct 2 price swing
• RES 2: 184.92 High Dec 22
• RES 1: 184.67 High Jan 12
• PRICE: 184.52 @ 17:27 GMT Jan 12
• SUP 1: 182.64 Low Jan 8
• SUP 2: 182.25 Low Dec 19 
• SUP 3: 181.47 50-day EMA
• SUP 4: 180.50 Low Dec 8 

The trend needle in EURJPY continues to point north. The flat correction since Dec 22 still appears to be a flag formation - a bullish continuation pattern. A resumption of the trend would open 186.62, the top of a bull channel drawn from the Feb 28 low. This level also represents a key medium-term resistance point. Key support to watch lies at 181.47, the 50-day EMA.    

$10.4B corporate debt issued Monday:

• Date $MM Issuer (Priced *, Launch #)
• 01/12 $3B *Energy Transfer 5Y +110a, 10Y +145a, 30Y +175a
• 01/12 $2.7B *Rep of Indonesia $1.1B +5Y 4.4%, $1.1B +10Y 5%, $500M +30Y 5.5%
• 01/12 $2.25B *Vistra Operations $1B 5Y +95, $1.25B 10Y +120
• 01/12 $1.75B #National Bank of Canada $1.25B 3NC2 +63, $500M 3NC2 SOFR+77
• 01/12 $700M *POSCO $400M 5Y +75. $300M 10Y +90
• 01/12 $Benchmark investor calls: Jefferies, Triton Int, Rithm Capital, Telecom Argentina, Azule Energy
  • Expected Tuesday:
  • 01/13 $Benchmark MuniFin WNG 4Y SOFR

• Stocks have recovered from the bout of morning selling, major indexes in the green as they currently extend record highs: the DJIA is currently up 15.42 points (0.03%) at 49,519.76 (49,543.79 record high), S&P E-Mini Future up 12.75 points (0.18%) at 7,017.75 (7,019.00 record), Nasdaq up 116.5 points (0.5%) at 23,788.83 (23,797.45).
• A mix of IT, Materials and Health Care sector shares alternately led advances AND declines in late trade.
• On the positive side: Dexcom +6.78%, , Albemarle Corp +4.85%, Western Digital +4.67%, Vistra Corp +4.66%, Akamai Technologies +4.66%, Seagate Technology +4.37%, Freeport-McMoRan +3.93%, Amphenol +3.90%, Teradyne +3.62% and Newmont +3.54%.
• Leading decliners included: Synchrony Financial -8.74%, Capital One Financial -6.45%, ON Semiconductor -5.43%, Moderna -5.16%, Baxter International -4.37%, American Express -4.23%, Baker Hughes -3.70%, QUALCOMM -3.67%, Regeneron Pharmaceuticals -3.66% and Citigroup -3.57%.
• Reminder, the next earnings cycle kicks off in earnest this week with Bank of NY Mellon, JPM reporting on Tuesday January 13, Bank of America, Wells Fargo and Citigroup on Wednesday, Goldman Sachs, Blackrock and Morgan Stanley on Thursday.