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US OPEN: Treasury Refunding News, Quieter Corporate Earnings.

CREDIT PRE-MARKET
  • USTs are trading marginally tighter (2-3bp across the curve), off richest levels seen at the European open as EGBs took a dovish tone. Focus today is the US Treasury’s Quarterly Refunding process for the Feb-Apr quarter with borrowing estimates released at 1500ET. The refunding announcement is scheduled for Wednesday at 0830ET.
  • CDX is trading similarly to Friday’s close (both main and XO), European credit has traded wider (1bp for Main and 4bp for XO) in the early Europe session but has become more rangebound awaiting US open.
  • Corporate credit (FICM) looks flat IG and +2.3bp for HY on initial prints.
  • Primary in Europe has been busier this morning (seven EUR issuances o/w 3 covered and 1 hybrid) with expectations of good activity in the US with Hyundai, HBAN, Northern Natural Gas and Golub Capital mentioned as likely to tap markets.
  • Equities: SXXP is flat on the day but <30% of stocks are higher, with energy (+1.6% on oil prices) offsetting falls in Utilities, Industrial, Financials and Comms. S&P e-mini is indicated around -0.2%.
  • Only five SPX stocks set to report today but includes Franklin (BEN US) and Whirlpool (WHR US)

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