facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
Weekly Fixed Income Views from December 11, 2020 Thumbnail

Weekly Fixed Income Views from December 11, 2020


  • Treasuries are richer finishing the week as pressure is out the curve as yields rallied ~2bp across the middle of the curve.
  • The yield on the 10-year dropped to the lower bound range on the week, opening at 0.972% to start and touching 0.871% on Friday.
  • 2-year yields also dropped 1.8 basis points Friday to 0.119%, the lowest since early October.
  • On the supply front, Thursday’s 30-year auction was met with strong demand. The spread between 5 year and 30 year bonds flatted to 125.15bps

Source: Bloomberg.


  • The corporate spread for the iShares iBoxx Investment Grade Corporate Bond ETF, LQD, was wider approx. +10bps
  • As we approach year-end, supply will start to dwindle. New issue supply has surpassed month-to-date and looking ahead next week’s supply projected to be $5 billion.
  • Year-to-date run rate 59% ($1.74 trillion).
  • Month-to-date $36 billion surpassing the projected $25-30 billion.
  • Week-to-date $20 billion surpassing the projected $15-20 billion.


HSBC Holdings $1.5bln PerpNC10

  • $1.5b PerpNC10 Sub Variable at Par to Yield 4.6%

Schwab $2bln Debt issued in 2-Parts

  • $1.25b 5Y Fixed (March 11, 2026) at +53
  • $750m 10Y Fixed (March 11, 2031) at +75

Schwab $2.5bln PerpNC10

  • $2.5b PerpNC10 Variable at Par to Yield 4%

Nasdaq $1.9bln Debt issued in 3 Parts

  • $600m 2NC1 Fixed (Dec. 21, 2022) at +30
  • $650m Long 10Y Fixed (Jan. 15, 2031) at +75
  • $650m 20Y Fixed (Dec. 21, 2040) at +80


  • Municipals underperformed Treasuries on the week with yields approximately 1bps lower across the curve
  • The municipal market continues to be supported by:
      •  Light supply and issuance heading into year-end; $8.53b over the next 30 days
      •  Seasonal redemptions; $20.4b over the next 30 days
      • Continued fund inflows; $992mm for the week ended 12/9
  • Stimulus discussions continue with the White House/Mnuchin re-entering negotiations. Business protections and aid to state and local governments remain divisive topics. An agreement reached before the holiday break would likely include or exclude both.
  • New York City was downgraded to AA- from AA by Fitch and outlook changed to negative by S&P as a result of the economic strains brought on by the pandemic

Source: Bloomberg.