TREASURY YIELDS SANK as investors scaled back risk fleeing to safe-haven assets on Wednesday. ADP released weak private-sector employment numbers for February, companies added 183,000 jobs compared to estimates of 189,000 jobs slowing to a three-month low. Investors will keep a keen eye on the Labor Department’s official report to be released on Friday. The 10-year U.S. Treasury note dipped 3.4 basis points. S&P -0.66%, Dow -0.51%, NASDAQ -0.92%
|Key Gainers and Losers||Volume Leaders|
|GE Capital Intl. Funding Co. 4.418% 11/15/2035
Barclays PLC 3.65% 3/16/2025
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. PNC Bank NA (USD) FLT% 3/12/2021 (03/05/2019): 1100MM Senior Unsecured Notes, Price at Issuance 100.
2. Merck & Co. Inc. (USD) 3.9% 3/7/2039 (03/05/2019): 1000MM Senior Unsecured Notes, Price at Issuance 98.958, Yielding 3.98%.
3. Brown & Brown Inc. (USD) 4.5% 3/15/2029 (03/05/2019): 350MM Senior Unsecured Notes, Price at Issuance 99.84, Yielding 4.51%.
Pfizer Inc. The most recent data showed money flowed out of high-yield ETFs/mutual funds for the week ended 2/22/19, with a net inflow of $0.69B, year-to-date $9.7B flowed into high-yield.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Weatherford International LTD (5Y Sen USD XR14)
Hertz Corp. (5Y Sen USD CR14)
|Cable & Wireless Communication (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)
Loans and Credit Market Overview
Deals recently freed for secondary trading, notable secondary activity:
- Xylem Inc., Amer Sports Corp., Orchid Orthopedic Solutions, Neustar Inc
Long-term bond yields are expected to hit a cyclical peak in 2019 given tight fiscal policy and lagging global economies. Europe remains checked by stubbornly low inflationary forces. Positive effects remained in force:
- TED spread held below 17 bp (basis points), as of 03/06/19
- Net positive capital flows into high-yield ETFs & mutual funds
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