Outlook for the week

Key economic releases for the week

• Tue, 9 Mar: SG: Manpower Survey
• Wed, 10 Mar: CH: CPI YoY (9:30AM), US: CPI YoY (9:30PM)
• Thu, 11 Mar: US: Initial Jobless Claims (9:30PM)

Last Week Summary

Widespread volatility across equity and bond markets as last week’s sell off continues. Despite a modest recovery on Monday, US equity indexes all plunged for the week. US Treasury yields continued their ascend, with the 10yr yield climbing to 1.566% on Thursday after Jerome Powell’s dovish comments on current yield curve management. Meanwhile Saudi Arabia and OPEC+ members reign on keeping oil supply in check, sparking a spike in oil futures to just below $65/barrel.

• With the global backdrop, investor participation remains weak in the new issue market. Average Initial Price Guidance tightening fell 14.3bps to 22.2bps last week. All new issues printed last week are now trading wider than reoffer. From available deal statistics, Asia investors kept on the sidelines. US and EMEA collectively took majority (51.6%) of bond allocations last week.
• DBS Group Holdings priced a USD 500mm 10NC5 Tier 2 bond at T+110bps yielding 1.822%. The A2/A rated bond tightened 25bps from the initial price guidance and priced slightly inside the fair value with -6.9bps of new issue premium.

New issue pipeline builds up as issuers hold off in light of heightened market volatility with 3 new mandates outstanding.