U.S. corporate bond update: the calendar is on the heavy side this week
U.S. corporate bond update: the calendar is on the heavy side this week with the big Saudi Arabia deal expected. Traders are estimating between $15 B and $30 B. Just over $30 B priced last week to bring October volume to $49 B, and the year-to-date to $1.38 tln. Also, spread have narrowed to new tights for the year. The Barclays index slipped to 131 basis points, the tightest since May 2012 at 132 basis points. It was as wide as 215 basis points this year. Expected to price today are Industrial & Commercial Bank of China with benchmark 5- and 10-year notes on tap. Korea National Oil has a 5- and 10-year deal too, while Turkiye Is Bankasi is selling 5.5-year paper. Also, potentially pricing early this week are Citigroup with a benchmark 10-year, a 7-year from JPMorgan, along with Wells Fargo and Bank of America. NGL Energy partners has a $400 M 7-year. EIB is expected Tuesday with a 3-year global offering. This week's calendar makes up for a thin Treasury supply slate, and could keep limit the downside in Treasury yields today after some weaker than expected data.