IGM's February Newsletter: What's New This Month!
Read on for the latest analysis, data and intelligence on syndicated bonds and the foreign exchange and rates markets.
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CREDIT OPEN: Lower beta trades dominating the line up
By?David Corbell
EU stocks look set for opening gains this morning as markets wade through the latest earnings salvo while also taking a cue from a positive overnight lead where Wall Street closed in the green with sentiment broadly underpinned by falling bond yields.
That's been followed by a broad advance in Asian indices while US index futures also point higher despite an after-hours fall in Qualcomm which posted an earnings beat but underwhelmed on guidance.
CORP SNAPSHOT: Parker-Hannifin & Infineon Technologies offer 5s ahead of maturities
By?Matthew Barrett
IG corporate supply is ticking over on Thursday with two issuers out in euros for a second straight session, although absolute supply volumes are to be lower with the latest duo touting just a single tranche each.
That after another US issuer went big on Wednesday in the form of International Business Machines Corporation which printed the largest euro corporate trade of the year at EUR3.5bn, taking that accolade off T-Mobile USA Inc which printed EUR2.75bn just the session before.
[MORNING CALL] On a Roll
By Ken Jaques
No, we're not talking about your breakfast order. Yesterday’s $19.65bln, the fourth busiest issuance day of the year, in new ex-SSA supply brought the week’s total haul to $34.015bln, enough to top the average weekly estimate ($32bln) for the fifth straight week. And, with Mizuho Financial Group’s 3-pt offering of fixed-to-fixed and floating notes, and Korea Electric Power’s proposed 3yr note offering – we don’t expect them to be the only entries today, there’s a good possibility that we could even top the highest weekly estimate of $40bln.
But yesterday wasn’t all about ex-SSA issuance not with Poland raising $5.5bln via a 2-pt offering of 5s and 10s, and IDA selling $2.5bln 10yr “sustainable development” bonds, bringing overall (SSA-inclusive) issuance for the week to $48.165bln, also topping the weekly overall average estimate of $40bln. And, with IFC lined up to sell 4.5yr “sustainability development” bonds and BOAD’s 30nc5 “sustainable” subordinated hybrid on the docket, the highest weekly estimate of $50bln could also be in jeopardy.
North American FX Open - BOE set to cut the Bank Rate by -25BPs
By Tony Nyman
The YEN starts the day firmest.
The G10's outperformer was supported overnight by the BOJ's perceived most hawkish board member Tamura indicating there could be two or more interest rate hikes in the upcoming fiscal year starting in April, in order to contain upside risks for achieving the Bank’s stable inflation target.
领英推荐
Outside of that, the USD is up near across the board as markets continue to digest comment from new US Treasury Secretary Bessent that the Trump admin’s focus in bringing down borrowing costs will be 10-year Treasury yields rather than the Fed's benchmark short-term interest rate. Bessent believes that expanding energy supply will help lower inflation and that reducing the budget deficit will help bring yields down.
ASIAN MORNING BUZZ: Markets brush off China's countermove on tariffs
By Nigel Lau
Markets climbed on Tuesday as a wave of dip buying supported stocks, with big tech leading the way.
In a retaliatory move to Trump's tariff, China announced on Tuesday that it would subject certain US goods to a 15% levy.
China's two new tariff lists target imported goods from the US valued at US$14bn, a sliver of the US$525bn of China's exports to the US that are being tariffed, with the cautious and calculated response by China helping to ease fears that a fully blown trade war was on the horizon.
Analyst insight: Monthly musings
Each month, one of our analysts shares their insights and perspectives on the current financial climate. Don't miss their expert take on the latest trends and developments.
This month, John Creegan, Technical Analyst, FX and Rates Research at IGM provides his insights:
"From a strategic perspective, we believe the current optimism surrounding business conditions post-election are warranted. However, from a tactical perspective, we are adopting a cautious stance, as the past three months has priced in much of the good news across most sectors."
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