US CREDIT OPEN-Bankers eye US$10bn-$15bn week for high-grade
By John Balassi
NEW YORK, Aug 15 (IFR) - Summary of overnight events and Monday's main headlines:
Dow Futures: +36, S&P Futures: +4.25, Nasdaq Futures: +8.75
CDX IG.26: -0.375 tighter, CDX HY.26: +0.0625 point higher
10-yr UST yield: 1.519% +0.4bp, 30-yr UST yield: 2.234% -0.1bp
EUR/USD: 1.1172 +0.13%
USD/JPY: 101.03 -0.26%
WTI Oil: $44.79 +0.67%
HEADLINES
China shares hit seven-month high
World shares set up camp at one-year peaks on Monday as a rally in Chinese stocks helped offset news that Japan's economic growth had ground to a halt last quarter, while oil prices extended their latest rally.
BoJ money target up for review
The Bank of Japan's policy review could put up for debate its target for expanding base money through massive asset purchases, sources say, but the challenge would be to avoid spooking bond markets used to years of unprecedented buying.
Oil rises on talk of producer action
Oil prices rose on Monday to their highest in nearly a month, with benchmark Brent crude trading more than 10 percent above the start of August, as speculation intensified about potential producer action to support prices in an oversupplied market.
China says markets decide fate of yuan
The internationalization of the yuan has exceeded people's expectations and its global acceptance will be driven by market forces, Yi Gang, a China central bank vice governor, said on Monday.
Brexit impact on Germany limited: Bundesbank
Britain's vote to leave the European Union should have limited immediate economic impact on Germany, the country's central bank said on Monday, noting the mood among entrepreneurs remained positive.
OVERNIGHT TREASURIES
* T-note futures marginally higher supported by Gilts and Bunds
* Low volume around 102k as at 06:00 GMT
* Spike high at 132-22+ before holding ahead of 132-29 from Friday
* Ten year yields trade tight 1.498-1.5170 range
* Curve sees slightly flatter with a better performance at longer end
* 10yr US/Germany down to 161bp ahead of trend at 157bp as USTs underperform
* 10-year cash trades in 1.510% to 1.500% range
* USTs underperforming Germany by 0.3bp in the 10-year maturity compared to the previous London close
GLOBAL MACRO
* Market opens risk-on due to higher oil prices
* Volumes subdued due to eurozone Assumption Day holiday
* UK BRC and retail data group Springboard report 0.3% rise in July high street footfall - Rtrs
* Brent Crude back above $47 as talk circulates that producers may tackle oversupply problems
* Shanghai Composite gains 2.45% as weak data renews thoughts of increased stimulus
DATA
* 08:30 Empire State Manufacturing Survey (Aug) (mkt 2.75, prev 0.55)
* 10:00 NAHB Housing Market Index (mkt 60, prev 59)
* 16:30 Treasury International Capital Statistics (Jun)
EVENTS
* 11:30 Treasury auctions 3- and 6-month bills (e: $40/34 bn)
USD HIGH-GRADE SUMMARY
Number of deals priced on Friday: 0
Friday's issuance: US$0
Last weeks issuance: US$38.625bn
*Monthly issuance: US$87.075bn
Quarterly issuance: US$181.675bn
2016 year to date issuance: US$895.042bn
2015 year to date issuance: US$883.227bn
2015 full year issuance: US$1.269trn
*New August monthly record
LIPPER FLOWS
For the week ended August 10 Lipper US Fund Flows reported the following:
- INVESTMENT-GRADE FUNDS NET INFLOW: US$2.518bn
- IG YTD NET INFLOW: US$25.790bn
USD HIGH-GRADE ACTIVE DEALS
None
USD HIGH-GRADE PIPELINE
WOORI BANK, A2/A-, hired Bank of America (Swiss: BAC.SW - news) /Merrill Lynch, Citigroup (NYSE: C - news) , Commerzbank (Xetra: CBK100 - news) , Credit Agricole CIB, HSBC and Nomura to arrange fixed-income investor meetings that took place in the US, Europe and Asia from July 11 to July 20. (Reporting by John Balassi; Editing by Marc Carnegie)