Ike, re: BTX, yen et al plus, also weighing on the bond market, an expected bunch of credit issuance challenging Treasuries. But this article says the corporate amount was exagerated - $30B instead of the feared $50B, and credit spreads are narrowing...Could this be a good sign for BTX, treasuries and financials?
Thanks,
Nancy
biz.yahoo.com
US CORP BONDS - Calendar full, but spreads narrow
NEW YORK, Sept 15 (Reuters) - Corporate bond spreads tightened further on Wednesday even as more new debt issues filled September's calendar.
''It's a reasonable calendar to be able to digest so the markets should be okay,'' said one high-grade syndicate official.
Spreads, the difference in yield between corporate bonds and U.S. Treasuries with comparable maturities, tightened by two to three basis points in moderate volume, traders said.
''On-the-run liquid stuff is what's trading,'' one said.
Ten-year swap spreads, meanwhile, tightened by a similar amount to about 93 basis points, about 15 below last week's peak.
The tightening comes amid a growing consensus that September high-grade issuance should total around $30 billion, well below the $50 billion that some observers had expected earlier.
''I feel like people were getting ahead of themselves on the total par amount being thrown around,'' said the syndicate official... |
