[MIDDAY UPDATE:] Yankees Stop Another Zero Day
MIDDAY UPDATE: Yankees Stop Another Zero Day 07/02/24
- Two Yankee deals, the only today, were announced overnight: ANZ Bank New Zealand is prepping a $500m (WNG) 10nc5 subordinated note offering, while Sumitomo Mitsui Financial Group is in the market with a 5-pt offering of 5yr fixed and/or floaters, 7yr and 10yr senior unsecured notes and a 20yr subordinated Tier 2 offering
- There was also one SSA offering launched overnight. European Investment Bank is looking to raise $4bln through a 7yr SEC registered global "climate awareness" "green" bond deal
- The three major indices opened marginally lower this morning
- Treasury yields are lower, with the benchmark 10yr note now yielding 4.433%, while the long bond is yielding 4.712%, 4bp lower, and the 2yr note yielding 4.731%, 4bp lower.
- Corporate spreads tightened 2bp overnight to where the average high grade bond is now trading 94bp over comparable Treasuries
- JOLTs Job Openings for May rose to 8.14m vs 7.96m estimates, with prior release revised to 7.919m down from 8.059m
- Chairman Powell is speaking at the ECB conference in Portugal, where he has emphasized progress in inflation but desire for more evidence before lowering rates
- Headline inflation in the euro area dipped to 2.5% in June in lie with expectations
- Traders in the Fed Funds future market are putting the odds of a rate cut in September at 63.2%, up from 59% last week.
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2024 HIGH GRADE ISSUANCE - 07/01 WEEK, JULY & 2024 ESTIMATES
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| 07/01 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 | $5.0B | $6.5B | $15.0B | $0 | EX-SSA | $80.0B | $85.0B | $95.0B | $0 | EX-SSA | $1.100B | $1.275B | $1.350B | $883,359 |
| OVERALL | $7.5B | $8.0B | $15.0B | $3,500 | OVERALL | $90.0B | $100.0B | $110.0B | $3,500 | OVERALL | $1.350B | $1.420B | $1.550B | $1,129,209 |
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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 |
| 25-Jun | KRATON CORP | CA/C/JPM/KDB/MIZ/SCB | 27-Jun | 144A REG S 3YR DEAL | |
| 26-Jun | SMRC AUTOMOTIVE | BAA3/NR | BNP/C/HSBC/JPM/MUFG | 26-Jun | 144A REG S 5YR DEAL |
| 28-Jun | WOORI BANK | A1/A+ | BOA/C/HSBC/MUFG/SG/WFS | 4-Jul | 144A REG S TIER I SUB S |
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2024 HIGH GRADE ISSUANCE - 07/01 CALENDAR
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| AMT | ISSUER | MAT | RATINGS | MGR | TALK |
| 4000 | EIB | 31 | AAA/AAA | BARC | +11.03 |
| 500 | ANZNZ | 34 | A3/A | ANZ | +175 A |
| TBA | SUMIBK | 29 | A1/A- | SMBC | SOFR+EQ |
| TBA | SUMIBK | 29 | A1/A- | SMBC | +120-125 |
| TBA | SUMIBK | 31 | A1/A- | SMBC | +130-135 |
| TBA | SUMIBK | 34 | A1/A- | SMBC | +140-145 |
| TBA | SUMIBK | 44 | A2/BBB+ | SMBC | +140-145 |
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