20th May, 2025

Markets are off to a cautious start this morning as stock futures point to a slightly lower open. The S&P 500 is looking to extend its winning streak to seven sessions, though early indications show modest weakness: Dow futures are down 7 points, S&P 500 futures are off 0.19%, and the NASDAQ is lower by 0.28%. Shares of Home Depot are bucking the trend, trading higher in pre-market action after the retailer reported earnings. The company reaffirmed its full-year guidance and noted it does not plan to raise prices in response to the recently announced tariffs.

In rates, the Treasury curve is mixed. The benchmark 10-year yield is up 1bp to 4.461%, the 30-year is 3bp higher at 4.932%, while the 2-year is 1bp lower at 3.964%. Credit spreads continue to grind tighter, with the average high-grade bond now trading 89bp over comparable Treasuries, the tightest levels since the last week of March.

New issuance was more resilient than expected yesterday despite the Moody’s downgrade of the US credit rating late Friday. While roughly 10 issuers opted to stand down in the wake of the downgrade, six borrowers proceeded with their deals. Activity was led by Yankee banks Credit Agricole SA, Cooperatieve Rabobank, and Svenska Handelsbanken AB, who together raised $4.75 billion of the day’s $8.6 billion total. Given the still-constructive market backdrop and the looming Memorial Day holiday, many of the stand-downs are expected to reattempt today.

Overnight, two SSAs announced new transactions. Rentenbank launched a $1.5 billion 5-year note, while Kommunalbanken also announced a 5-year deal that is expected to price tomorrow.

.

2025 HIGH GRADE ISSUANCE - 05/19 WEEK, MAY & 2025 ESTIMATES

.

.

2025 HIGH GRADE ISSUANCE - RECENT MANDATES

.

---- Subscribe to read more ----

To receive this analysis plus much more, subscribe to IGM. Request your free trial of the service today.