US CREDIT OPEN-US high-grade bond supply keeps rolling

By John Balassi

NEW YORK, Aug 10 (IFR) - Summary of overnight events and Wednesday's main headlines:

Dow Futures: +15, S&P Futures: +3.25, Nasdaq Futures: +6.25

CDX IG.26: -0.125 tighter, CDX HY.26: +0.0625 point higher

10-yr UST yield: 1.538% -0.7bp, 30-yr UST yield: 2.248% +1.0bp

EUR/USD: 1.1181 +0.58%

USD/JPY: 101.13 -0.75%

WTI Oil: $42.62 -0.35%

HEADLINES

Futures tread water after S&P, Nasdaq (Frankfurt: 813516 - news) highs

US stock index futures were little changed on Wednesday as investors paused after powering the S&P 500 and the Nasdaq to record intraday highs.

World stocks hit one-year peak, dollar sags

World stocks posted a one-year high while the dollar sagged on Wednesday after weak US productivity data was seen reducing the prospect of an interest rate hike by global central banks.

Oil falls on glut, doubts about producer talks

Oil fell on Wednesday, hit by improved prospects for US output and a glut in refined products, while analysts largely expected no impact on supplies from talk of a potential producer meeting to discuss propping up prices.

Dollar drops as Fed hike prospects reassessed

The dollar fell against a basket of currencies on Wednesday as investors re-evaluated whether the Federal Reserve will raise interest rates this year, which also sent the higher-yielding Australian dollar to its loftiest level since late April.

BoJ maintains 2% inflation target in Sept review

The Bank of Japan is preparing an assessment of its policies due next month that will maintain a pledge to hit its 2 percent inflation target at the earliest date possible, sources said.

OVERNIGHT TREASURIES

* Bonds bounce overnight but then fade on approach to early New York trading

* Sep (Shanghai: 600021.SS - news) 10s mark 132-16/132-10 range overnight, last at 132-12.5

* Moderate volume, 173k 10-year futures trade by 06:19 EST

* Customer flows mixed, Japanese/Asian accounts hit several dealers in front-end, suspected to be moving into auction paper, mixed flows across rest of curve, good receiving longer end

* 10-year cash trades in 1.530% to 1.542% range

* USTs outperforming Germany by 0.9bp in the 10-year maturity compared to the previous London close

GLOBAL MACRO

* Market opens risk-off as corporate results and soft US data disappoint

* Core markets supported by soft UK APF purchase in 15-year and longer bucket

* Bank of England to make up QE shortfall in second half of programme

* Brent Crude back below $45 as oversupply concerns resume

* EU states agree budget fine waivers for Spain, Portugal

* Shanghai Composite loses 0.21% as regulators express concerns on banking sector liquidity issues

* France June Industrial Output -0.8% m/m (exp 0.1%, prev -0.5%)

DATA

* 07:00 MBA Weekly Mortgage Application Indices

* 10:00 Job Openings and Labor Turnover Survey (Jun) (mkt job openings level 5.574 mn, prev 5.500 mn)

* 10:30 EIA Weekly Petroleum Status Report

* 14:00 Federal Budget (Jul) (CBO -$113 bn, prev July -$149 bn)

EVENTS

* 13:00 Treasury auctions $23 bn new 10-year notes

USD HIGH-GRADE SUMMARY

Number of deals priced on Tuesday: 4

Tuesday's issuance: US$7.25bn

Weekly issuance: US$19.050bn

Monthly issuance: US$67.5bn

Quarterly issuance: US$162.100bn

2016 year to date issuance: US$875.467bn

2015 year to date issuance: US$868.476bn

2015 full year issuance: US$1.269trn

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

ROYAL BANK OF SCOTLAND GROUP, exp issue B/BB-, announced a US$ benchmark SEC (Shanghai: 603988.SS - news) registered perpetual non-call 5-year (8/05/21)subordinated AT1 contingent capital notes. RBS (LSE: RBS.L - news) is the Global Coordinator and Structuring Advisor as well and Citigroup (NYSE: C - news) , Deutsche Bank (LSE: 0H7D.L - news) , JP Morgan and UBS (LSE: 0QNR.L - news) as joint leads. Pricing expected today. Settle: 8/15/16. IPTs: 8.75% area.

MURPHY OIL CORPORATION (Frankfurt: 856127 - news) announced a US$500m SEC-Reg 8-year senior note offering via JPM(left). UOP: for general corporate purposes, which may include the repayment, repurchase or redemption of the company's 2.5 percent notes due 2017. BIZ: Murphy Oil Corporation is a global independent oil and natural gas exploration and production company.

USD HIGH-GRADE PIPELINE

STANDARD CHARTERED BANK, exp issue Ba1/BB-/BBB-, has mandated Standard Charter as structuring advisor and joint lead manager and BAML, DB, GS (KSE: 078935.KS - news) , SG, and UBS as joint lead managers on a US$ 144a/Reg S perpetual non-call 5.5-year contingent convertible AT1 notes in the near future, subject to market conditions. The notes contain a 7% CET1 trigger with equity conversion.

BAXTER INTERNATIONAL (NYSE: BAX - news) , Baa2/BBB+, hired Bank of America (Swiss: BAC.SW - news) Merrill Lynch and Goldman Sachs (NYSE: GS-PB - news) to arrange investor calls that took place on Monday, with BAML coordinating.

WOORI BANK (KSE: 000030.KS - news) , A2/A-, hired Bank of America/Merrill Lynch, Citigroup, 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)