Daily Flows & Insights – U.S. Equities Fall and Bond Yields Rise

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.
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Curve Team
Jack Pedersen