Daily Flows
- Today, Police Bank launched a 3-year MTN with a price guidance of +155.
- Police Bank is rated BBB+ by Fitch and BBB by S&P. The pricing of the launch is competitive, pricing higher than similar issuances and offerings in the secondary market.
- Yesterday, market participants were able to lock in 5.50% for 12 months, and NCD margins touched +50 as increased demand drove levels up.
U.S. Equities Fall and Bond Yields Rise
- Overnight, bond yields surged due to a weak US Treasury auction, with the 30-year notes selling at a yield of 4.769%.
- US Federal Reserve Chair Jerome Powell’s comments at an IMF conference also contributed to the bond sell-off.
- Powell expressed a willingness to tighten policy further if deemed necessary and stated the FOMC’s commitment to achieving a 2% inflation target.
- The US 10-year Treasury yield increased by 15 basis points to 4.63%, while the 2-year Treasury yield rose by 10 basis points to 5.03%.
- US equities are expected to finish lower, ending an 8-day rally, as Powell’s somewhat hawkish remarks influenced market sentiment.