Building Corporate Issuance Slate Applies Further Pressure

A building of the corporate issuance slate as issuers look to get paper away before tomorrow’s CPI release (headlined by BP benchmark 10-Year supply and an Estee Lauder multi-partner covering 5-, 10- & 30-Year paper) adds to the dynamic witnessed on Monday, adding pressure further out the curve after the aforementioned weakness that was initially driven by the front end. TYM3 looks through early session lows on the move, but fails to breach yesterday’s base, while cash Tsys now run flat to ~2bp cheaper as the curve bear flattens. Not much in the way of rate locking pressure is observable in swap spreads as of yet, with spreads beyond the 2-Year point trading either side of unchanged.