> Finance & Stock Exchange > Bonds
EURO GOVT-Bonds open lower with T-Notes in thin trading
Reuters: [2008-05-26 08:12:00]
LONDON, May 26 (Reuters) - Euro zone government bond futures opened lower on Monday with softer U.S. Treasuries, but volumes were expected to be less than half normal levels due to market holidays in the UK and United States.
No major data from the euro zone is due to be released during the session.
On Friday, euro zone government bond yields eased after soaring during the week to multi-month peaks as investors squared up positions and readied for the long weekend.
At 0607 GMT, the June Bund future <FGBLc1> was down 10 ticks on the day at 112.96, having opened at 113.01.
The interest rate-sensitive two-year Schatz yield <EU2YT=RR> was up 1.4 basis points at 4.221 percent. ((Reporting by George Matlock; george.matlock@reuters.com; Reuters Messaging: george.matlock.reuters.com@reuters.net; +44 20 7542 2508; editing by David Stamp))
Keywords: MARKETS BONDS EURO
EURO CORP-CDS spreads widen, demand good for cash EDF bonds
Reuters: [2008-05-23 17:04:00]
By Jane Baird
LONDON, May 23 (Reuters) - European credit spreads widened on Friday, extending a market decline kicked off by surging oil prices, after the investment grade index broke through a technical resistance level, an analyst said.
In the cash bond market, meanwhile, strong demand enabled French utility EDF <EDF.PA> to tighten guidance on two bonds and add a third to a planned sale.
By 1436 GMT, the investment-grade Markit iTraxx Europe index <ITRAC5EA=GFI> was at 86.5 basis points, according to data from Markit, 7.5 basis points wider versus late on Thursday.
The index had been trading in a range between 60 and 80 basis points through the month, said Maureen Schuller, a debt strategist at ING in Amsterdam. "When the index broke though the 80 level, it tended to widen further, faster," she said.
Thin trading ahead of Monday holidays in both Britain and the United States tended to reinforce the technical move, she said.
Since late on Monday, the Europe index has widened by 23.5 basis points as oil prices have risen to records and as the U.S. Federal Reserve forecast cut its forecast for growth and warned of higher inflation.
"The main driver has been the oil price rise this week," Schuller said.
The Markit iTraxx Crossover index <ITCRS5EA=GFI>, made up of 50 mostly "junk"-rated credits, was at 470 basis points, 35 basis points wider. The index has widened by 78 basis points since late on Monday.
Friday's data on euro zone economic growth and U.S. home sales confirmed fears of an economic slowdown at the same time.
Existing U.S. home sales fell 1 percent in April, although the figure came in at the high end of expectations.
Inventories of unsold homes surged to 11.2 months worth at the current pace of sales, the highest level since the National Association of Realtors began tracking single family and condo properties together in 1999.
In Europe, the purchasing managers index for service companies fell in May by more than expected to match a 4-1/2-year low reached in January as a strong euro and high oil prices hurt companies' margins.
EDF SEES STRONG DEMAND
As for cash bonds, the EDF bond sale indicated the market was holding up better than the derivatives market.
The French power company cut guidance on planned six-year and 12-year euro bonds and added a third 20-year sterling bond.
"If there is a substantial move wider or tighter, the CDS market typically changes ahead of the cash markets," Schuller said.
The EDF bond sale was the second of the year for the power company, following a 1.5 billion euro 10-year bond it priced on Jan. 18 at mid-swaps plus 70 basis points.
Guidance on the Friday deal was tighter by comparison at 68 to 69 basis points for a 12-year bond. At the same time, the investment-grade Europe index was wider versus a range on Jan. 18 of 72 to 75 basis points. (Editing by Sue Thomas) ((jane.baird@reuters.com; +44 207 542 2471; Reuters Messaging: jane.baird.reuters.com@reuters.net))
* Reuters clients can view related news by double clicking on:
[EUB] All Eurobond news
[DBT] Debt reports
[EUB-ISU] New debt issues
[IGD] Investment-grade bonds
[HYD] High-yield bonds
[ABS] Asset-backed securities
[CDV] Credit derivatives news
[AAA] Credit ratings news
[TOP/DBT] Top fixed income news
[TOP/CREDIT] Top credit news
Other market reports:
[GVD/EUR] Euro government debt report
[US/] U.S. Treasury market report
[USC/] U.S. corporate bond report
[.EU] European stock market report
[.L] UK stock market report
[.N] Wall Street report
Guides:
For prices or rates, double click on: <EUROBONDS>
For credit ratings, double click on: <RRS0001>
For credit derivatives, double click on <CDSINDEX>
For top corporate bond issuers, double click on <0#TOPISSUER>
Keywords: MARKETS BONDS EUROCORP/
EURO CORP-CDS spreads widen, demand good for cash EDF bonds
Reuters: [2008-05-23 17:04:00]
By Jane Baird
LONDON, May 23 (Reuters) - European credit spreads widened on Friday, extending a market decline kicked off by surging oil prices, after the investment grade index broke through a technical resistance level, an analyst said.
In the cash bond market, meanwhile, strong demand enabled French utility EDF <EDF.PA> to tighten guidance on two bonds and add a third to a planned sale.
By 1436 GMT, the investment-grade Markit iTraxx Europe index <ITRAC5EA=GFI> was at 86.5 basis points, according to data from Markit, 7.5 basis points wider versus late on Thursday.
The index had been trading in a range between 60 and 80 basis points through the month, said Maureen Schuller, a debt strategist at ING in Amsterdam. "When the index broke though the 80 level, it tended to widen further, faster," she said.
Thin trading ahead of Monday holidays in both Britain and the United States tended to reinforce the technical move, she said.
Since late on Monday, the Europe index has widened by 23.5 basis points as oil prices have risen to records and as the U.S. Federal Reserve forecast cut its forecast for growth and warned of higher inflation.
"The main driver has been the oil price rise this week," Schuller said.
The Markit iTraxx Crossover index <ITCRS5EA=GFI>, made up of 50 mostly "junk"-rated credits, was at 470 basis points, 35 basis points wider. The index has widened by 78 basis points since late on Monday.
Friday's data on euro zone economic growth and U.S. home sales confirmed fears of an economic slowdown at the same time.
Existing U.S. home sales fell 1 percent in April, although the figure came in at the high end of expectations.
Inventories of unsold homes surged to 11.2 months worth at the current pace of sales, the highest level since the National Association of Realtors began tracking single family and condo properties together in 1999.
In Europe, the purchasing managers index for service companies fell in May by more than expected to match a 4-1/2-year low reached in January as a strong euro and high oil prices hurt companies' margins.
EDF SEES STRONG DEMAND
As for cash bonds, the EDF bond sale indicated the market was holding up better than the derivatives market.
The French power company cut guidance on planned six-year and 12-year euro bonds and added a third 20-year sterling bond.
"If there is a substantial move wider or tighter, the CDS market typically changes ahead of the cash markets," Schuller said.
The EDF bond sale was the second of the year for the power company, following a 1.5 billion euro 10-year bond it priced on Jan. 18 at mid-swaps plus 70 basis points.
Guidance on the Friday deal was tighter by comparison at 68 to 69 basis points for a 12-year bond. At the same time, the investment-grade Europe index was wider versus a range on Jan. 18 of 72 to 75 basis points. (Editing by Sue Thomas) ((jane.baird@reuters.com; +44 207 542 2471; Reuters Messaging: jane.baird.reuters.com@reuters.net))
* Reuters clients can view related news by double clicking on:
[EUB] All Eurobond news
[DBT] Debt reports
[EUB-ISU] New debt issues
[IGD] Investment-grade bonds
[HYD] High-yield bonds
[ABS] Asset-backed securities
[CDV] Credit derivatives news
[AAA] Credit ratings news
[TOP/DBT] Top fixed income news
[TOP/CREDIT] Top credit news
Other market reports:
[GVD/EUR] Euro government debt report
[US/] U.S. Treasury market report
[USC/] U.S. corporate bond report
[.EU] European stock market report
[.L] UK stock market report
[.N] Wall Street report
Guides:
For prices or rates, double click on: <EUROBONDS>
For credit ratings, double click on: <RRS0001>
For credit derivatives, double click on <CDSINDEX>
For top corporate bond issuers, double click on <0#TOPISSUER>
Keywords: MARKETS BONDS EUROCORP/
Forward Calendar - U.S. corporate bond new issues
Reuters: [2008-05-23 14:52:00]
May 23 (Reuters) - The following are lists of upcoming high-grade and
high-yield corporate bond offerings in the United States. The information was
gathered from IGM CorporateWatch, and other market sources:
*Denotes 144a private placement debt offering.
HIGH-GRADE BOND SALES EXPECTED FOR WEEK OF 5/19/2008
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
Amer Express Crdt $900 mln 2-yr frn Aa3/A+/A+ BARC/BNP/DB 5/20
Amgen Inc $500 mln 10-yr A3/A+/A GS/ML 5/21
Amgen Inc $500 mln 30-yr A3/A+/A GS/ML 5/21
*ArcelorMittal $1.5 bln 5-yr Baa2/BBB+/BBB GS/JPM/HSBC 5/19
*ArcelorMittal $1.5 bln 10-yr Baa2/BBB+/BBB GS/JPM/HSBC 5/19
Bank of America $2.7 bln preferred A1/A+/AA- BAS 5/20
Baxter Int'l $500 mln 10-yr A3/A+/A GS/JPM 5/19
Conn Pwr & Light $300 mln 10-yr A3/BBB+/A- BARC/CITI/WB 5/19
Genworth Fin $600 mln 10-yr A2/A/A+ MS/DB/UBS 5/19
HSBC Hldgs Plc $1.5 bln 30-yr Aa3/A+/AA- HSBC 5/19
ILFC $750 mln 5.5-yr A1/A+/A BARC/BNP/LEH/ML 5/21
ING USA Funding $1.25 bln extendible Aa3/AA/NA HSBC/GS/MS 5/21
Kraft Foods $1.25 bln 10-yr Baa2/BBB+/BBB GS/CS/HSBC 5/19
Kraft Foods $750 mln 30-yr Baa2/BBB+/BBB GS/CS/HSBC 5/19
Lexmark Int'l $350 mln 5-yr Baa2/BBB/NA CITI/JPM 5/19
Lexmark Int'l $350 mln 10-yr Baa2/BBB/NA CITI/JPM 5/19
Northwest Pipe $250 mln 10-yr Baa2/BBB-/BBB BAS/BNP/RBGSC 5/19
PartnerRe $250 mln 10 yr A1/A/A+ CS/WB 5/21
Pepsico $1.75 bln 10-yr Aa2/A+/AA- JPM/ML/MS 5/19
Public Svc of NH $110 mln 10-yr Baa1/BBB+/BBB+ BARC/BKNY 5/19
Rosslekhozbank $750 ml 5-yr Baa2/BBB+/NA ABS/C/GS 5/21
Rosslekhozbank $1.0 bln 10-yr Baa2/BBB+/NA ABS/C/GS 5/21
*Transcont Gas $250 mln 10-yr Baa2/BBB-/BBB BAS/JPM/RBSGC 5/19
Veolia Environ. $700 mln 5-yr A3/BBB+/NA BAS/CS/DB/ML 5/21
Veolia Environ. $700 mln 10-yr A3/BBB+/NA BAS/CS/DB/ML 5/21
Veolia Environ. $400 mln 10-yr A3/BBB+/NA BAS/CS/DB/ML 5/21
------------------------------------------------------------------------------
SPLIT-RATED BOND SALES EXPECTED FOR WEEK OF 5/19/2008
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
Liberty Mutual Gr $1.25 bln 50-yr hyb Baa3/BB+/BBB- CITI/BAC/JPM 5/21
------------------------------------------------------------------------------
CONVERTIBLE BOND SALES EXPECTED FOR WEEK OF 5/19/2008
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
------------------------------------------------------------------------------
HIGH-YIELD BOND SALES EXPECTED FOR WEEK OF 5/19/2008
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
Chesapeake Engy $800 mln 10.5-yr Ba3/BB-/NA CS/BAS/LEH/DB/RBSGC 5/20
EchoStar DBS $750 mln 7-yr Ba3/BB-/NA CS 5/20
El Paso Corp $600 mln 10-yr Ba3/BB-/NA DB/GS/JPM 5/22
Forest Oil $250 mln 10-yr B1/B+/NA BAS/BNP/CS/DB/JPM 5/19
Nortel Networks $675 mln 10-yr B3/B-/NA JPM/CITI 5/21
Plains Explor. $400 mln 10-yr B1/BB/NA JPM/BAS/LEH/ML 5/20
------------------------------------------------------------------------------
UPCOMING DEALS
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
------------------------------------------------------------------------------
PREVIOUS HIGH-GRADE BOND SALES
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
ACE INA Holdings $450 mln 7-yr A3/A-/A CITI/JPM/WB 5/12
*AIG $4.0 bln 60-yr Aa3/A/A+ CITI/JPM 5/13
BJ Services $250 mln 10-yr Baa1/BBB+/NA CITI/ML 5/14
Canadian Pac Rail $400 mln 5-yr Baa3/BBB/NA MS/RBC 5/14
Canadian Pac Rail $300 mln 10-yr Baa3/BBB/NA MS/RBC 5/14
Centerpoint Engy $300 mln 10-yr Baa3/BBB/BBB BARC/CS/LEH 5/12
Deutsche Bk (Lon) $2.5 bln 5-yr Aa1/AA/NA 5/15
Eaton Corp $300 mln 5-yr A2/A/A CITI/JPM/MS 5/15
Eaton Corp $450 mln 10-yr A2/A/A CITI/JPM/MS 5/15
*Entergy Gulf $375 mln 10-yr Baa3/BBB+/BBB MS/RBS/MIZ 5/12
*Harley David Fnd $1.0 bln 10-yr A1/A/A+ CITI/JPM 5/15
*HBOs Plc $2.0 bln 10-yr Aa3/A+/AA GS/LEH/MS 5/15
Istar Financial $750 mln 5-yr Baa2/BBB/BBB BAS/CITI/JPM 5/16
JP Morgan $2.5 bln 30-yr Aa2/AA-/AA- JPM 5/16
NiSource Finance $TBA 5-yr Baa3/BBB-/BBB- BAS/JPM/WB 5/15
NiSource Finance $TBA 10-yr Baa3/BBB-/BBB- BAS/JPM/WB 5/15
Parker-Hannifin $450 mln 10-yr A2/A/A BAS/GS/MS 5/13
Parker-Hannifin $325 mln 20-yr A2/A/A BAS/GS/MS 5/13
Petro Canada $600 mln 10-yr Baa2/BBB/NA CITI/DB/HSBC 5/12
Petro Canada $900 mln 30-yr Baa2/BBB/NA CITI/DB/HSBC 5/12
Philip Morris $2.0 bln 5-yr A2/A/A+ CS/DB/LEH 5/13
Philip Morris $2.5 bln 10-yr A2/A/A+ CS/DB/LEH 5/13
Philip Morris $1.5 bln 30-yr A2/A/A+ CS/DB/LEH 4/13
Simon Property $700 mln 5-yr A3/A-/A- BAS/CITI/DB/GS 5/12
Simon Property $800 mln 10-yr A3/A-/A- BAS/CITI/DB/GS 5/12
Sovereign Bank $500 mln 10-yr Baa1/BBB/BBB- LEH 5/13
Tampa Electric $150 mln 10-yr Baa2/BBB-/BBB+ BNP/MS 5/13
United Tech. $1.0 bln 30-yr A2/A/A+ BAS/CITI 5/13
Wells Fargo Cap $2.5 bln perpetuals Aa3/AA-/NA JPM/ML/MS/UBS 5/12
------------------------------------------------------------------------------
PREVIOUS SPLIT-RATED BOND SALES
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
PS of New Mexico $350 mln 10-yr Baa3/BB+/NA LEH/ML 5/8
------------------------------------------------------------------------------
PREVIOUS HIGH-YIELD BOND SALES
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
*Atlas Energy $150 mln 10-yr B3/B/NA JPM/WACH 5/6
*DIRECTV Hldgs/LLC$1.35 bln 8-yr Ba3/BB/NA JPM/BAS/CS 5/7
*Newfield Explor $600 mln 10-yr Ba3/BB-/NA JPM/MS 5/5
------------------------------------------------------------------------------
PREVIOUS CONVERTIBLE SECURITIES SALES
COMPANY AMT MAT/DEBT RTGS MGRS PRICED
------------------------------------------------------------------------------
DEALS RECENTLY POSTPONED
COMPANY AMT MAT/DEBT RTGS MGRS DATE POSTPONED
Bunge Ltd Fin $TBA 5-yr Baa2/BBB-/BBB BNP/HSBC/JPM/RBSGC 3/12
Bunge Ltd Fin $TBA 10-yr Baa2/BBB-/BBB BNP/HSBC/JPM/RBSGC 3/12
------------------------------------------------------------------------------
MANAGERS: SYNDICATE DESK NUMBERS:
GENERAL HIGH-YIELD HIGH-GRADE
ABN - ABN Amro Securities Inc 212-409-7563 212-409-7563
BAS - Banc of America Securities 212-583-8352 212-933-3433
BOCM - Banc One Capital Markets 312-732-7885 312-336-2525
BARC - Barclays Capital 212-412-2626 212-412-6730
BEAR - Bear Stearns & Co 212-272-5007 212-272-5371
BNP - BNP Paribas 212-841-3658 212-841-3658
CITI - Citigroup Global Markets 212-723-6001 212-723-6121
CS - Credit Suisse 212-325-3290 212.325-3325
DBS - Deutsche Bank Securities Inc 312-336-2525 312-732-1476
GS - Goldman Sachs & Co 212-902-8204 212-902-5954
JPM - J.P. Morgan Chase & Co 212-270-1100 212-834-4533
KBW - Keefe Bruyette & Woods 212-887-7777
LEH - Lehman Brothers Inc 212-526-9664 212-526-9664
ML - Merrill Lynch & Co 212-449-6762 212-449-4949
MS - Morgan Stanley 212-761-1286 212-761-1957
UBS - UBS Investment Bank 203-719-1556 203-719-1088
WACH - Wachovia Securities 704-383-1928 704-383-7727
((U.S. Financial Desk 646-223-6330))
Keywords: MARKETS CORPORATEBONDS CALENDAR
EURO GOVT-Bonds gain as equities drop, T-Notes reverse losses
Reuters: [2008-05-23 10:24:00]
By George Matlock
LONDON, May 23 (Reuters) - Euro zone government bonds snapped back from earlier softness on Friday after European bourses opened weaker <.FTEU3> and U.S. Treasuries reversed earlier losses.
Bunds showed little reaction to euro zone flash estimates for the Purchasing Managers' Index (PMI). The composite PMI was 51.1 in May, below a 51.6 forecast, but still above 50.0 which separates expansion from contraction of the economy.
The services component was estimated at 50.6, below a forecast of 51.7 while the manufacturing sector registered 50.5 - in line with the forecast.
June Bund futures already headed a third of a point higher before the euro zone PMI data was released, as equities extended initial losses.
"The market has racked up gains but it is a thin market. There could be some book-squaring going on today, before the UK and U.S. market holiday on Monday, but that holds true if you think there are shorts to be covered. We are rather of the opinion there are people bailing out of longs," said a trader in London.
At 0810 GMT, the interest rate-sensitive two-year Schatz yield <EU2YT=RR> was down 2.2 basis points at 4.189 percent.
The 10-year Bund yield <EU10YT=RR> was down 3.3 basis points at 4.275 percent, while the 50-year benchmark <EU50YT=RR> was down 2.4 basis points at 4.792 percent.
The June Bund future <FGLBc1> was up 27 ticks on the day at 112.94, pulling away from 112.53 - its lowest level since late October - struck earlier in the session.
Into next week, the main focus was likely to be a hefty amount of supply concentrated on 10-year debt in the euro zone.
"We have a lot of 10-year bond auctions next week and it comes after investors made trade-lengthening moves this week, exiting two-year debt and buying into 10-year paper," said Marc Ostwald, a bond analyst at Insinger de Beaufort in London.
"The effect of this is that bond auction results next week risk being poor as investors won't want the supply. We have two-to-three weeks of heavy 10-year bond supply coming," he added.
Overnight, Treasuries edged down in Asia <TYv1> as Tokyo shares edged higher <.N225> -- the latter getting some reprieve after oil prices hit a record high above $135 a barrel <CLc1> this week but eased on Friday.
But raised inflation worries have convinced investors the Federal Reserve's next move will be to raise interest rates from 2.0 percent, with short-term rate futures pricing in a small chance of two quarter-point rate hikes before the end of the year <FEDWATCH>. (Editing by David Christian-Edwards) ((Reporting by George Matlock; george.matlock@reuters.com; Reuters Messaging: george.matlock.reuters.com@reuters.net; +44 20 7542 2508))
Keywords: MARKETS BONDS EURO
Next: EURO CORP-Spreads widen in thin market as fears persist