Corporate bonds are showing surprising strength in the face og economic data which manifests weakness and a crumbling equity market.The IG 10 is a tad tighter at 130 ¾ /131 ¾ . One veteran salesperson suggested that there is still a substantial street short in the index and dips are met with protection selling.
There has been a bit of a revival in the new issue market with several deals scheduled for today. There is a 5 year deal by General Mills as well as a preferred issue from GECC.
There is also a two part deal from RussianTrans Nest and a 10 year from HKGC Finance.
Early reports indicate that the issues are attracting support from retail investors.