- Treasuries were down on the week with losses across the entire curve, led by the long end.
- The 10-year yield was choppy, reaching 0.76% on Tuesday, back approaching the 0.84% levels seen last Friday.
- Curves are slightly steeper, but overall unchanged week-over-week. Friday’s morning session saw 5s30s curve topped at 124.8bp while 2s10s reached 69.5bp.
- The focus remains on headlines and sentiment leading into the Nov 3rd election.
- The corporate spread for the iShares iBoxx Investment Grade Corporate Bond ETF, LQD, was approximately 5bps wider this week.
- Primary issuance was slow to start the week, the bulk of the deals came mid-week. Approximately $8 billion came to market on Thursday 10/29. Ending the week at $20 billion, above the streets projected $15 billion.
- Looking ahead into next week, no investment grade companies are scheduled due to uncertainty around election day.
- Year-to-date run rate is 64% ($1.62 trillion)
Corporate New Issue Highlights
P&G $2.25 billion 2-part deal
- $1b 5Y Fixed (Oct. 29, 2025) at +25
- $1.25b 10Y Fixed (Oct. 29, 2030) at +47
Berkshire Hathaway Energy $2 billion 2-part deal
- $500m 10Y Fixed (May 15, 2031) at +90
- $1.5b 30Y Fixed (May 15, 2051) at +128
Boeing $4.9 billion 4-part deal
- $1b Long 3Y Fixed (Feb. 1, 2024) at +180
- $1.4b Long 5Y Fixed (Feb. 1, 2026) at +240
- $1.1b Long 7Y Fixed (Feb. 1, 2028) at +265
- $1.4b Long 10Y Fixed (Feb. 1, 2031) at +280
- Municipal yields were 2-3bps flatter, underperforming Treasuries slightly for the week.
- The Broad Municipal Index is down -0.29% month-to-date.
- Municipal funds saw inflows of $582 million for the week ended 10/28, following $607 million inflow last week. Funds have seen inflows in 24 of the last 25 weeks dating back to May.
- Visible supply over the next 30 days is $4.75 billion, dropping significantly from prior week highs ($24.25 billion on 10/20, as many issuers were out in front of the election to take advantage of low rates and future uncertainties).
- Issuance next week is expected to be $982.9 million.
- Notable deals include; Michigan State Housing Authority $277.3 million, Southern New Hampshire University $144.9 million, Maine Turnpike Authority $130 million, Charleston County School District $93.3 million.