Bond Archives - Zxcoachoutlet

Europe’s Record Cash Pile Set to Prime Next Stage of Bond Rally

October 10, 2020

(Bloomberg) — An upcoming surge in euro-area bond sales should be more than swept up by the record amount cash of sitting idly in the economy, potentially adding fuel to the rally sweeping across the region’s debt markets.

Next week, bond offerings in the eurozone are expected to rise five-fold, with Germany, Italy and France, among others issuing a combined 30 billion euros ($35.4 billion) worth of securities, according to Commerzbank AG. That’s still less than the amount of debt coming due.

The supply also comes as excess liquidity in the euro area ballooned past the 3-trillion-euro mark for the first time ever last week, thanks to unprecedented support from the European Central Bank.

chart: Italy sells debt next week with yields at record lows

© Bloomberg
Italy sells debt next week with yields at record lows

The monetary authority’s liquidity injections have already pushed yields on some of the region’s riskiest borrowers to record lows. With speculation now growing that

Indian cenbank cheers bond market despite keeping rates on hold

October 9, 2020

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By Swati Bhat

MUMBAI, Oct 9 (Reuters) – The Reserve Bank of India assured bond markets on Friday that it stands ready to take whatever measures are necessary to ensure adequate liquidity in the banking system, sparking a sharp rally.

The RBI said it will conduct on-tap long-term repo operations, open market purchases of bonds and special open market operations (S-OMOs), and also provide the increased held-to-maturity limit to banks until March 2022 versus March 2021.

“For the bond market, this is like an early Diwali and just as the March policy (decision) was termed a bazooka, there is enough today to light up some fireworks,” said Arvind Chari, head of fixed income and alternatives at Quantum Advisors, referring to the Hindu festival of lights which falls next month.

The benchmark 10-year bond yield IN057730G=CC dropped as much as 10 basis points to 5.92% on Friday. The measures were

Tradeweb Government Bond Update – September 2020

October 8, 2020

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August’s government debt sell-off proved to be short-lived. Amid a flurry of central bank and economic news, 10-year government bond yields fell in September, with some pushed further into negative territory.

Italy’s 10-year bond mid-yield saw the largest decline, plunging 26 basis points to finish the month at 0.82%. Yields on Portugal and Spain’s benchmark notes also posted significant drops, decreasing by 15 basis points to 0.26% and 0.25%, respectively. While Portuguese Finance Minister Joao Leao said the economy was recovering better than expected, the European Commission still predicts a GDP contraction of 9.8% this year. Similarly, Spain’s GDP is expected to contract by 10.9% this year, however, the country’s Economy Minister Nadia Calvino forecasted an expansion of more than 10% in the third quarter.

Meanwhile, the German 10-year Bund yield fell by nearly 12.5 basis points to close at -0.53%. Data from Germany’s Federal Statistical Office showed that consumer

The Bond Market Has Become Non-Labor Intensive

October 8, 2020

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By Kevin Flanagan

Jobs Day last Friday was the final such report before the election. However, given the headlines surrounding President Trump and the First Lady’s COVID-19 diagnoses and the ongoing specter of a potential fiscal stimulus package, this month’s employment data has flown a bit under the radar and had little, if any, immediate impact on the bond market. That being said, labor market improvement continued, albeit at a more moderate pace than the last few months. Here are the key takeaways:

Despite the “headline miss” for payrolls, the overall report was relatively solid.
Total nonfarm payrolls (NFP) rose 661,000, visibly lower than the +859,000 consensus estimate, but the prior two months were revised upward by 145,000. Put those two numbers together and the gain (+806,000) is a lot closer to consensus.
Also, temporary census workers got removed in September, but perhaps more important was the fact that private

Rhea Chakraborty Gets Bail on Personal Bond of Rs 1 Lakh, No Bail For Brother Showik

October 7, 2020

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Rhea Chakraborty posing for the camera: रिया और उनका भाई शौविक (फाइल फोटो)

© Taru Bhatia | India.com Entertainment Desk
रिया और उनका भाई शौविक (फाइल फोटो)

Bombay High Court has granted bail to Sushant Singh Rajput’s girlfriend and actor Rhea Chakraborty after nearly a month of her arrest in a drug-related case. It is reported that she got bail on a personal bond of Rs 1 lakh. The high court said that Rhea should mark her presence for 10 days in the police station and deposit her passport so that she cannot travel abroad with the court’s permission. And whenever she wants to leave Mumbai, Rhea needs to inform the investigating officer. Sushant Singh Rajput’s employees Dipesh Sawant and Samuel Miranda have also been granted bail. However, Rhea Chakraborty’s brother Showik Chakraborty didn’t get bail. Rhea Chakraborty’s lawyer Satish Maneshinde said: “We are delighted by the order. Truth and Justice have prevailed and ultimately the submissions on facts and law have been

Argentina lures wary investors with dollar-linked bond as IMF arrives

October 7, 2020

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By Jorge Otaola, Eliana Raszewski

BUENOS AIRES (Reuters) – Argentina tempted wary investors with a dollar-linked bond on Tuesday, issuing around $1.8 billion of the instrument it hopes will help bolster the peso amid a domestic currency crisis, stringent capital controls and tumbling foreign reserves.

FILE PHOTO: Argentine one hundred peso bills are displayed in this picture illustration taken September 3, 2019. REUTERS/Agustin Marcarian/Illustration

The bond is part of a series of measures by the government and the central bank to revive confidence in the peso and encourage local savings. Argentina restructured over $100 billion in foreign-currency debt in recent months.

The restructurings, including $65 billion in foreign-law debt, helped pull the grains-producing nation out of default, but its access to global markets is very restricted. A mission from the International Monetary Fund arrived in the country on Tuesday to start talks for a new deal.

“The government has to

GRAPHIC-U.S. bond yields steepen on stimulus hopes, but can they stick?

October 6, 2020

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By David Randall and Saqib Iqbal Ahmed

NEW YORK, Oct 6 (Reuters) – Rising expectations that a Biden victory and a Democratic sweep of Congress will result in broad fiscal stimulus seem to have roused U.S. bond yields out of a months-long stupor.

Range-bound U.S. Treasuries popped higher Monday and remained elevated Tuesday as the yield curve continued to steepen, dropping bond prices further away from record highs. The spread between 10- and 30-year Treasuries, a closely-watched indicator of future inflation expectations, is now at its widest since November 2016, according to Refinitiv data.

A large fiscal stimulus would likely help shore up the economy and push inflation higher while also increasing supply through expanded borrowing, fund managers and analysts said.

Optimism toward a stimulus deal has increased as Democratic presidential candidate Joe Biden’s lead over President Donald Trump has widened.

Analysts said that made it more likely

Exclusive: EU Exploring Using Bond Auctions for Pandemic-Linked Debt Sales | Investing News

October 6, 2020

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AMSTERDAM (Reuters) – The European Commission is exploring using auctions to sell bonds as it prepares to ramp up debt issuance to finance the European Union’s post-pandemic recovery programmes, the EU Commissionner for Budget and Administration said on Tuesday.

“The Commission’s immediate focus is the issuance of the SURE bonds, due later this month,” Johannes Hahn said referring to the EU’s unemployment scheme that will be backed by around 100 billion euros of debt.

“Beyond that, the Commission is exploring all options for a scaled up issuance volume, including using auctions for its issuances,” Hahn told Reuters in emailed comments.

SURE issuance is expected mostly to rely on bank syndicates to market bonds to investors — the format supranationals such as the EU commonly use. But after that programme, the EU will need to raise finance a 750 billion-euro recovery fund that forms the lion’s share of its support to

Rolls-Royce kicks off marketing for highly-anticipated junk bond

October 5, 2020

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By Eleanor Duncan

LONDON, Oct 5 (IFR) – Rolls-Royce is kicking off the high-yield bond leg of its survival plan this week with a £1bn-equivalent multi-currency deal.

The British aerospace company (Ba3/BB-/BB+) has hired BNP Paribas, Citigroup and Goldman Sachs as global co-ordinators and bookrunners to kick off four days of investor calls in Europe and the US, beginning on October 6.

Rolls-Royce is looking to place a minimum of £1bn-equivalent senior unsecured notes targeting maturities of 2026 (long five-year) and 2027 (straight seven-year) and denominated in euros, sterling and/or US dollars.

Proceeds, together with the company’s rights issue, will be used for increasing the company’s liquidity headroom, and to repay upcoming debt maturities including the US$500m 2.375% notes due October 2020, the €750m 2.125% notes due June 2021 and£300m of commercial paper due March 2021.

BNP Paribas and Goldman Sachs will be co-ordinating European logistics, while Citigroup will

Companies Test a New Type of ESG Bond With Fewer Restrictions

October 5, 2020

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Finance chiefs are selling a new type of bond designed to attract socially minded investors that costs less and offers more leeway for companies than other types of sustainable debt.

These instruments, known as sustainability-linked bonds, are similar to traditional debt sales—with one major exception: They are usually structured such that companies pay a higher interest rate to investors if they fail to achieve a set of environmental and other goals before the maturity date. Also, the proceeds from these bonds can be used for general purposes, such as paying down existing debt, which sets it apart from other types of green, social and sustainability bonds.

Luxury fashion brand Chanel, pharmaceutical company

Novartis AG

and Brazilian paper maker

Suzano SA

all issued sustainability-linked bonds in September, according to the Climate Bonds Initiative, a nonprofit that tracks such debt sales. Italian utility

Enel

SpA was the first company to issue this