Fixed Income Market Update – April 29, 2019 – CUSIP Reporting

Market Update with CUSIP Reporting. April 29, 2019. CBXmarket

Weekly Market Update 4.29.19

CUSIP reporting and market analysis

4.29.19

Last week, the market saw the decline of the USD on Friday, having dipped after soaring to nearly 2-year highs as the market awaited the Commerce Department’s release of 1Q19 GDP figures, according to international wires. The department announced that GDP rose at a 3.2% annualized rate during the quarter, above previous analyst estimates of 2%, a Reuters report indicated. This release “set the stage” for Fed meetings this week, with UBS analysts projecting USD depreciation as investors become risk-averse and the global economy sees improvement, according to the report.

All eyes are on the Fed this week, with investors anticipating that waits will remain unchanged ahead of the May 1 policy announcement, Bloomberg reported. On Monday, the Treasury released plans to slash 2Q19 borrowing from previous estimates, with updated plans to take out $30bn from April through June. Traders will be eyeing which maturities the Treasury favors and how the paper will be allocated given the Treasury’s plan to step back from purchasing mortgage-back debt, another fixed income report indicated.

CBXmarket | Top 10 New Issues  | Most Actively Traded CUSIPS  | Fixed Income Market Update

US Treasury rates fell on Friday, amid release of the GDP figures and “tame” inflation data, with the short end of the curve dropping 3bp to 2.3% for 2-year notes, Reuters reported. However, those yields increased again on Monday following reports of a surge in consumer spending at the highest levels seen in nearly a decade.

Unlike the stock markets, which are at record highs—the tech sector continues to outperform the rest, having added more than $1tn in market cap over the past four months—the US corporate bond rally has subsided. Spreads on investment-grade and high-yield paper alike have “traded in a very narrow band,” and YTD have tightened some 44bp and 157bp, respectively, according to a Morningstar analyst.

CBXmarket | Top 10 Trade Volume by SubSector  | YTD Supply by SubSector  | YTW by SubSector  | Fixed Income Market Update CBXmarket | 1 week spread change by Sector | S&P Ratings Changes |Fixed Income Market Update

This paper is intended for information and discussion purposes only. The information contained in this publication is derived from data obtained from sources believed by CBXmarket to be reliable and is given in good faith, but no guarantees are made by CBXmarket with regard to the accuracy, completeness, or suitability of the information presented. Nothing within this paper should be relied upon as investment advice, and nothing within shall confer rights or remedies upon, you or any of your employees, creditors, holders of securities or other equity holders or any other person. Any opinions expressed reflect the current judgment of the authors of this paper and do not necessarily represent the opinion of CBXmarket. CBXmarket expressly disclaims all representations and warranties, express, implied, statutory or otherwise, whatsoever, including, but not limited to: (i) warranties of merchantability, fitness for a particular purpose, suitability, usage, title, or noninfringement; (ii) that the contents of this white paper are free from error; and (iii) that such contents will not infringe third-party rights.

The information contained within this paper is the intellectual property of CBXmarket and any further dissemination of this paper should attribute rights to CBXmarket and include this disclaimer.