[MIDDAY UPDATE:] Slowing Down for CPI
MIDDAY UPDATE: Slowing Down for CPI 07/10/24
- 2 ex-SSA borrowers raised just $1.25bln yesterday, bringing the total on the week to $16.5bln
- Mitsubishi Corp announced a 10yr benchmark deal overnight and BFCM followed this morning, announcing a 3.5yr FXD and/or FRN senior preferred deal
- Saudi Aramco, considered a SSA because more than 90% is government owned, is in the market with todays only SSA deal: a 10yr, 30yr, 40yr offering. Books are heard to be $18bln with a target size of at least $3bln.
- The three major indices are mixed again this morning with the Dow down 8pts (-0.02%), while the Nasdaq (+0.63%) and S&P (+0.34%) are higher. The S&P 500 recorded another record close last night.
- Treasury yields are lower this morning, with the benchmark 10yr note now yielding 4.287% (-1bp), while the long bond is yielding 4.482%, 1bp lower, and the 2yr note yielding 4.616%, just barely lower.
- Corporate spreads were unchanged with the average high grade bond still trading 92bp over comparable Treasuries
- Traders in the Fed Funds future market are putting the odds of a rate cut in September at 71.8%, up from 68.4% last week.
- Honeywell has agreed to acquire Air Products (LNG Unit) for $1.81bln in an all cash deal
- MBA Mortgage Applications were 0.2% lower, after being 2.6% lower last month
- Wholesale inventories came in 0.6% higher, in line with expectations.
- Fed Chair Powell is speaking with the House Financial Services Committee today.
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2024 HIGH GRADE ISSUANCE - 07/08 WEEK, JULY & 2024 ESTIMATES
| 07/08 WK | LO EST | AVE EST | HI EST | ACTUAL | JUN | LO EST | AVE EST | HI EST | ACTUAL | 2024 | LO EST | AVE EST | HI EST | ACTUAL |
| EX-SSA | $20.0B | $16,500 | EX-SSA | $80.0B | $85.0B | $95.0B | $21,850 | EX-SSA | $1.100B | $1.275B | $1.350B | $905,309 | ||
| OVERALL | $22.5B | $27.5B | $20,500 | OVERALL | $90.0B | $100.0B | $110.0B | $33,350 | OVERALL | $1.350B | $1.420B | $1.550B | $1,159,15 |
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2024 HIGH GRADE ISSUANCE - RECENT MANDATES
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| ANNOUNCED | ISSUER | RATINGS | MGRS | CALL | DEAL |
| 30-May | REC LIMITED | BAA3/BBB- | BARC/DBS/HSBC/MIZ/MUFG/SCB | 3-Jun | 144A REG S DEAL |
| 25-Jun | NONGHYUP BANK | AA3/A+ | BOA/C/CA/HSBC/MUFG/SCB | 1-Jul | 144A REG S DEAL |
| 28-Jun | WOORI BANK | A1/A+ | BOA/C/HSBC/MUFG/SG/WFS | 4-Jul | 144A REG S TIER I SUBS |
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2024 HIGH GRADE ISSUANCE - 07/09 PRICINGS
ISSUE | RATINGS | MGRS | AMT | CALL | CPN | MAT | SPRD | TYPE | |
| 07/09 | INTERAMERICAN DEV BANK | AAA/AAA | BOA/BMO/C/WFS | 2500 | NC | 4.375 | 10YR | +15.6 | SU |
| 07/09 | JAPAN BANK FOR INTL COOP | A1/A+ | BAR/C/GS/MIZ | 1500 | NC | 4.625 | 3YR | +22.6 | SU |
| 07/09 | BANK OF MONTREAL | BAA3/BBB- | BOA/BMO/C/GS/TSI/UBS | 750 | NC10 | 7.300 | 60YR | 7.30 | YF |
| 07/09 | PANASONIC HOLDINGS CORP | BAA1/A- | BOA/MS | 500 | T+15 | 10YR | +100 | YI | |
| 2/2 | 1250 | 4/4 | 5250 |
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