US CREDIT OPEN-As slowdown hits, bankers eye US$5bn week
By John Balassi
NEW YORK, Aug 22 (IFR) - Summary of overnight events and Monday's main headlines:
Dow Futures: -53, S&P Futures: -4.75, Nasdaq Futures: -9.75
CDX IG.26: +0.9875 wider, CDX HY.26: -0.1875 point lower
10-yr UST yield: 1.576% -0.04bp, 30-yr UST yield: 2.279% -0.07bp
EUR/USD: 1.1299 -0.23%
USD/JPY: 100.51 +0.32%
WTI Oil: $47.21 -2.71%
HEADLINES
Dollar, US yields up as markets eye hike
The dollar strengthened and U.S (Other OTC: UBGXF - news) . Treasury yields hit a two-week high on Monday on expectations the Federal Reserve will give a signal this week that it is gearing up to raise interest rates.
Oil down as China fuel exports jump, US rigs rise
Oil prices fell nearly 3 percent on Monday as China ramped up exports of refined products, U.S. oil producers added rigs for an eighth consecutive week, and prospects emerged for increased exports from Iraq and Nigeria
Dollar strengthens on Fischer's upbeat comments
The dollar rose on Monday, tracking short-dated U.S. Treasury yields after comments from Federal Reserve Vice Chairman Stanley Fischer revived bets on a U.S. interest rate hike by the end of this year.
Pfizer (NYSE: PFE - news) to buy Medivation (NasdaqGS: MDVN - news) in US$14bn deal
Pfizer Inc said on Monday it would buy U.S. cancer drug company Medivation Inc in a deal valued at about $14 billion to boost its oncology portfolio.
OVERNIGHT TREASURIES
* T-note futures fall after hawkish comments from Fed Vice Fischer
* Futures trade 131-22 - 131-29 range, last at 131-27 down 3 ½ ticks
* Decent volumes at 191k as at 06:15 EST
* 2s/30s 1.25bp flatter at 152bp
* 10-yr US/Germany 2.5bp wider at 164.5bp
* 10-year cash trades in 1.600% to 1.585% range
* USTs underperforming Germany by 0.6bp in the 10-year maturity compared to the previous London close
GLOBAL MACRO
* Market opens risk-off as Jackson Hole caution grips market
* Merkel, Hollande, Renzi meet to discuss Brexit
* Netherlands may follow UK with EU referendum
* Brent Crude slips back below $50 as expectations fade that producers may tackle oversupply problem
* Shanghai Composite loses 0.75% on profit taking
DATA
* 08:30 Chicago Fed National Activity Index (Jul) (prev 0.16)
EVENTS
* 11:45 FedTrade operation 30-year Fannie Mae / Freddie Mac (max $2.075 bn)
USD HIGH-GRADE SUMMARY
Number of deals priced on Friday: 1
Friday's issuance: US$2bn
Weekly issuance: US$9.775bn
Monthly issuance: US$96.85bn
Quarterly issuance: US$191.450bn
2016 year to date issuance: US$904.817bn
2015 year to date issuance: US$900.202bn
2015 full year issuance: US$1.269trn
LIPPER FLOWS
For the week ended August 17 Lipper US Fund Flows reported the following:
- INVESTMENT-GRADE FUNDS NET INFLOW: US$2.161bn
- IG YTD NET INFLOW: US$27.951bn
USD HIGH-GRADE ACTIVE DEALS
None
USD HIGH-GRADE PIPELINE
Industrial Bank of Korea, Aa2/AA (Frankfurt: A116XA - news) -, hired HSBC and Nomura to arrange fixed income investor meetings that took place in Hong Kong and Singapore on Monday in preparation for a 144a/Reg S dollar-denominated offering.
Woori Bank (KSE: 000030.KS - news) , 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)