US CREDIT OPEN-Futures flat ahead of Beige Book, Yellen speech

By John Balassi

NEW YORK, Jan 18 (IFR) - Summary of overnight events and Wednesday's main headlines:

Dow Futures: +11.00 S&P Futures: +2.50 Nasdaq Futures: +7.75

CDX IG.27: -0.25 tighter CDX HY.27: +0.0625 higher

10yr UST yield: 2.365%, +3.8; 30yr UST yield: 2.968%, +4.2

EUR/USD: 1.0668, -0.44%

USD/JPY: 113.49, +0.77%

WTI Oil: $51.63, -1.62%

HEADLINES

Futures flat ahead of Yellen speech

U.S. stock index futures were little changed on Wednesday ahead of another set of big bank earnings and Federal Reserve Chair Janet Yellen's speech.

Goldman Sachs (NYSE: GS-PB - news) profit soars on post-election trading

Goldman Sachs reported a nearly fourfold rise in quarterly profit on Wednesday as it benefited from a surge in trading following Donald Trump's win in November's election.

Target cuts Q4 forecast on weak holiday sales

Target lowered comparable store sales and earnings forecasts for Q4, citing softer-than-expected holiday sales due to what it called disappointing traffic and sales trends.

OPEC upbeat on non-cartel compliance

OPEC signaled a falling oil supply surplus in 2017 on Wednesday as the producer group's output declines from a record high and outside producers show positive initial signs of complying with the first joint supply-reduction deal since 2001.

OVERNIGHT TREASURIES

*Belly leads bonds lower in quiet trading overnight

* Customer flows mixed, overseas accounts sell belly on way down, buy into dip

* Block seller 3.5k TNH at 135-06 shortly before London open

* Moderate volume, 232k 10-year futures trade by 06:16 EST

* March 10s trade 125-09/124-29.5 overnight, last at 124-31.5

* 10s trade 2.329%/2.362% overnight, last at 2.356%

* 2s/10s 1.5bp steeper at 118.8bp last

GLOBAL MACRO

* Market opens risk-on due to stronger corporate updates

* German finmin preparing for Greek aid without IMF

* Greek PM says bailout review can be concluded without legislating new measures

* UK receives positive responses from Brussels on leaving plan

* Brent moves back below $55 as US producer signal increased production levels

* Shanghai Composite gains 0.14% as industrials indicate stronger results

* German December CPI Final 0.7% m/m (exp 0.7%, prev 0.7%) and 1.7% y/y (exp 1.7%, prev 1.7%)

* German December HICP Final 1.0% m/m (exp 1.0%, prev 1.0%) and 1.7% y/y (exp 1.7%, prev 1.7%)

* UK December Claimant Count -10.1k (exp 5.0k, prev 1.3K)

* UK November ILO Unemployment Rate 4.8% (exp 4.8%, prev 4.8%)

* UK November Average Weekly Earnings 2.8% 3m/yy (exp 2.6%, prev 2.6%)

* UK November Average Earnings (Ex-Bonus) 2.7% (exp 2.6%, prev 2.6%)

* EZ December Inflation Final 0.5% m/m (exp 0.5%, prev -0.1%) and 1.1% y/y (exp 1.1%, prev 1.1%)

DATA

* 07:00 MBA Weekly Mortgage Application Indices

* 08:30 CPI (Dec (Shanghai: 600875.SS - news) ) (mkt +0.3% m/m, +2.1% y/y; prev +0.2% m/m, +1.7% y/y)

* 08:30 Core CPI (Dec) (mkt +0.2% m/m, +2.2% y/y; prev +0.2% m/m, +2.1% y/y)

* 08:30 Real Average Hourly Earnings (Dec) (mkt +0.1% m/m, prev -0.3% m/m)

* 08:55 Redbook Same-Store Sales Index (weekly) (prev +0.9% y/y)

* 09:15 Industrial Production (Dec) (mkt +0.6% m/m, prev -0.4% m/m)

* 09:15 Factory Output (Dec) (mkt +0.4% m/m, prev -0.1% m/m)

* 09:15 Capacity Utilization (Dec) (mkt 75.4%, prev 75.0%)

* 10:00 NAHB Housing Market Index (Jan) (mkt 69, prev 70)

* 11:30 Cleveland Fed Median CPI (Dec) (prev +0.2% m/m)

* 16:00 Treasury International Capital Statistics (Nov)

EVENTS

* 09:00 FRB Dallas's Kaplan (voter, centrist) on business confidence in uncertain times; Dallas, TX

* 09:45 FedTrade operation 30-year Fannie Mae / Freddie Mac (max $2.125 bn)

* 11:00 FRB Minneapolis's Kashkari (voter, dove) on Economic Opportunity & Inclusive Growth; Minneapolis, MN

* 14:00 Beige Book

* 15:00 Fed Chair Yellen (voter, dove) on monetary policy goals and how to pursue them; San Francisco, CA (Frankfurt: A0JC59 - news)

USD HIGH-GRADE SUMMARY

Number of deals priced on Tuesday: 6

Tuesday's issuance: US$20.750bn

Weekly issuance: US$20.750bn

Monthly issuance: US$112.033bn

Quarterly issuance: US$112.033bn

2017 year to date issuance: US$112.033bn

2016 year to date issuance: US$93.399bn

2016 full year issuance: US$1.288trn

LIPPER FLOWS

For the week ended Jan 11, Lipper US Fund Flows reported the following:

- *INVESTMENT-GRADE FUNDS NET INFLOW: US$4.029bn

- IG YTD NET INFLOW: US$6.215bn

*Third-largest weekly IG (Frankfurt: A0EARV - news) inflow on record

USD HIGH-GRADE ACTIVE DEALS

The Export-Import Bank of Korea (KEXIM), Aa2/AA (Frankfurt: A116XA - news) /AA-, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered 3-part note offering that includes a 3-year FXD, 5-year FXD, and a 5-year FRN. JBRs: Daiwa, DB, GS, HSBC, JPM, StanChart (HKSE: 2888-OL.HK - news) . JLMs: Daiwa, DB, GS, Hanwha (KSE: 00088K.KS - news) Investment & Securities, HSBC, JPM, StanChart. Co-manager: KEXIM Asia. Pricing expected today.

FINAL GUIDANCE: 3yr FXD T+70-75bp, 5yr FXD T+95bp area (+/- 2.5bp), 5yr FRN L equiv

IPTs: 3yr FXD T+85bp area, 5yr FXD T+110bp area, 5yr FRN L equiv

ANZ New Zealand (International)London Branch, Aa3/AA-/AA-, announced a US$ benchmark 144A/RegS 5-year fixed and/or floating senior unsecured notes. ANZ, Citi, MS and RBC are the active bookrunners. Pricing expected today.

IPTs: 5yr FXD, T+120bp area; 5yr FRB, L equiv.

USD HIGH-GRADE PIPELINE

Empresa de Transporte de Pasajeros Metro S.A. (Metro (Amsterdam: ME6.AS - news) Santiago), A+/A, Santiago, Chile (Stuttgart: 704599.SG - news) 's subway owner/operator, mandated Bank of America (Swiss: BAC-USD.SW - news) /Merrill Lynch and J.P. Morgan (Other OTC: MGHL - news) to arrange investor meetings in preparation for a dollar-denominated 144a/REGS 30-year new issue that could soon follow their conclusion. Roadshows end in Boston on January 17.

International Company for Water and Power Projects (ACWA Power), mandated Jefferies as global coordinator and sole structuring adviser along with Citi, CCB Singapore, Mizuho and Standard Chartered (BSE: 580001.BO - news) as joint lead managers and joint books for meetings in US, Europe, Asia and the Middle East that began Nov 23 2016. The company is considering benchmark USD senior secured 144A/Reg S offering with expected investment-grade ratings.

Canara Bank (BSE: CANBK.BO - news) mandated BAML, Barclays (LSE: BARC.L - news) , BNP Paribas (LSE: 0HB5.L - news) , Citigroup (NYSE: C - news) , HSBC, JP Morgan and Credit Agricole (Swiss: ACA.SW - news) as joint lead managers for a senior unsecured US dollar 144A/Reg S offering. The deal, expected to be issued out of Canara Bank's London branch, will target around US$300m-$500m, a bank official said. UOP: Fund business operations. (Reporting by John Balassi; Editing by Marc Carnegie)