US CREDIT OPEN-More supply seen as record August keeps rolling

By John Balassi

NEW YORK, Aug 11 (IFR) - Summary of overnight events and Thursday's main headlines:

Dow Futures: +54, S&P Futures: +5.50, Nasdaq Futures: +13.75

CDX IG.26: -0.0625 tighter, CDX HY.26: +0.0175 point higher

10-yr UST yield: 1.522% +2.1bp, 30-yr UST yield: 2.251% +2.4bp

EUR/USD: 1.1141 -0.30%

USD/JPY: 101.40 +0.13%

WTI Oil: $41.58 -0.31%

HEADLINES

Futures rise ahead of weekly jobs data

US stock index futures were higher on Thursday as oil prices steadied and investors awaited the weekly jobless claims data for hints of a strengthening labor market.

Stocks choppy, Kiwi soars after rate cut

World shares hovered close to one-year highs on Thursday while the latest interest rate cut in a developed market - this time New Zealand - got a lukewarm reaction from investors.

Oil steadies as IEA sees balanced market

Oil prices steadied Thursday after the International Energy Agency forecast crude markets would rebalance in the next few months following several years of heavy overproduction.

German economy lost momentum in Q2

The German economy lost some growth momentum in the second quarter after a strong performance in the first three months of the year, the economy ministry said on Thursday.

EU bank rescue chief firm on bail-ins

Creditors will be hit if a European bank fails and no exceptions to the 'bail-in' rule are considered, the chief of the European Union's bank rescue body said.

OVERNIGHT TREASURIES

* Bonds modestly lower in quiet trading overnight

* Very light volume, only 102k 10-year futures trade by 06:09 EST

* Sep (Shanghai: 600021.SS - news) 10s mark 132-25/132-17.5 range overnight, last at 132-18

* Customer flows light and scattered, bits of selling from related markets

* 10-year cash trades in 1.505% to 1.520% range

* USTs outperforming Germany by 0.1bp in the 10-year maturity compared to the previous London close

GLOBAL MACRO

* Market opens risk-on due to above forecast corporate results

*IMF opines that ECB should concentrate on QE rather than lower interest rates

* Spain 10-year yields hit record lows as hopes grow of Rajoy remaining in power

* Brent Crude back below $42 as oversupply concerns resume

* Shanghai Composite loses 0.53% as energy sector suffers on lower oil prices

* UK July RICS Housing Survey 5 (exp 6, prev 15)

* France July CPI (EU Norm) Final -0.4% m/m (exp -0.4%, prev 0.1%) and 0.4% y/y (exp 0.4%, prev 0.3%)

* Italy July Consumer Prices Final 0.2% m/m (exp 0.2%, prev 0.2%) and -0.1% y/y (exp -0.1%, prev -0.1%)

* Italy CPI (EU Norm) Final -1.9% m/m (exp -1.8%, prev -1.9%) and -0.2% y/y (exp -0.1%, prev -0.2%)

* Italy June Trade Balance EUR1.202bn (prev EUR1.775bn)

* Italy June Global Trade Balance EUR4.662bn (prev EUR5.032bn)

* Germany August TR IPSOS PCSI 55.3 (prev 56.1)

* France August TR IPSOS PCSI 40.60 (prev 39.30)

* UK August TR IPSOS PCSI 49.20 (prev 49.45)

* Italy August TR IPSOS PCSI 34.60 (prev 34.30)

* Spain August TR IPSOS PCSI 41.20 (prev 39.10)

DATA

* 08:30 Initial Jobless Claims (06Aug) (mkt 265k, prev 269k)

* 08:30 Continued Claims (30Jul) (mkt 2.140 mn, prev 2.139 mn)

* 08:30 Import Prices (Jul) (mkt -0.3% m/m, prev +0.2% m/m)

* 08:30 Export Prices (Jul) (mkt 0.0% m/m, prev +0.8% m/m)

EVENTS

* 11:00 Treasury announces 5-year TIPS (e: $16 bn)

* 13:00 Treasury auctions $15 bn new 30-year bonds

USD HIGH-GRADE SUMMARY

Number of deals priced on Wednesday: 5

Wednesday's issuance: US$9.4bn

Weekly issuance: US$28.450bn

*Monthly issuance: US$76.9bn

Quarterly issuance: US$171.500bn

2016 year to date issuance: US$884.867bn

2015 year to date issuance: US$882.477bn

2015 full year issuance: US$1.269trn

*New August monthly record

LIPPER FLOWS

For the week ended August 3 Lipper US Fund Flows reported the following:

- INVESTMENT-GRADE FUNDS NET INFLOW: US$2.472bn

- IG YTD NET INFLOW: US$23.271bn

USD HIGH-GRADE ACTIVE DEALS

STANDARD CHARTERED PLC (HKSE: 2888.HK - news) , exp issue Ba1/BB-/BBB-, announced a US$ benchmark 144A/RegS perpetual non-call 5.5-year contingent convertible AT1 notes. Standard Charter is structuring advisor and joint lead manager and BAML, DB, GS, SG, and UBS (LSE: 0QNR.L - news) as joint lead managers. The notes contain a 7% CET1 trigger with equity conversion. Pricing expected today. IPTs: 8% area. Price Guidance: 7.625% area. Final Guidance: 7.50% (#).

WESTPAC BANKING CORP (WSTP), Aa2/AA (Other OTC: AATDF - news) -, is out with a US$ benchmark muti-part offering that includes a 3yr FXD/FRN, 5yr FXD/FRN and 10yr FXD. The active bookrunners are BAML, Citi, HSBC and MS. Pricing expected today. IPTs: 3yr FXD T+90bp area, 3yr FRN L equiv, 5yr FXD T+100bp area, 5yr FRN L equiv, 10yr T+125bp area

USD HIGH-GRADE PIPELINE

COLORADO INTERSTATE GAS CO LLC,Baa3/BBB-, asked J.P. Morgan and Mizuho to arrange fixed income investor calls that took place on Wednesday with Mizuho coordinating.

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)