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Europe’s New Bond Sales Top $100 Billion in Record-Shattering Week
Europe’s bond market is wrapping up its biggest week ever, with over $100 billion of new debt sales underscoring its status as a major global funding vehicle.
Issuers from China, Indonesia, Japan and the U.S. joined local borrowers in tapping Europe’s super-low funding costs and increasingly mature bond market, helping push sales for the week to 92.5 billion euros ($103 billion). U.S.-Iranian tensions also added extra impetus to the traditional year-start rush, as issuers dashed to get deals done before any market deterioration.
“It has been a remarkable week given the events in the Middle East,” said Frazer Ross, head of EMEA investment grade DCM syndicate at Deutsche Bank AG. “All areas of the market are functioning well.” Sales in Europe are well ahead of the issuance in the U.S., where about $84 billion in new debt has been offered this week.
Demand from Europe’s bond buyers has shown few signs of decline, even with 2020’s blockbuster start coming after a record year for issuance in 2019. Secondary-market bond spreads have barely flickered amid this week’s deal deluge, and issuers including E.On SE, Banco Santander SA and Portugal drew large orderbooks.
The rush of deals this week has lifted 2020 sales ahead of 2019’s pace, after a relatively muted start to the year. The boom was partly promoted by companies bringing forward planned deals amid the Middle East tensions.
Debt Sales Deluge
Europe's weekly syndicated bond issuance sets new record. The front-loading of January deals, and the upcoming earnings seasons, suggests the sales pace may cool into next week. Still, there are more deals waiting to go in the pipeline including National Grid Plc and European Financial Stability Facility.
https://www.bloomberg.com//news/articles/2020-01-10/europe-s-record-100-billion-bond-sale-week-seals-global-status?srnd=markets-vp
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December Employment Report: 145,000 Jobs Added, 3.5% Unemployment Rate-steady
U.S. stocks futures held on to their gains on Friday after job growth slowed more than expected in December, but the pace of hiring remains more than enough to keep the longest economic expansion in history humming along.
The Labor Department’s closely watched monthly employment report on Friday also showed the jobless rate holding near a 50-year low of 3.5%. A broader measure of unemployment dropped to a record low 6.7% last month, though wage gains ebbed.
Total non-farm payroll employment rose by 145,000 in December, and the unemployment rate was unchanged at 3.5 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in retail trade and health care, while mining lost jobs.
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The change in total non-farm payroll employment for October was revised down by 4,000 from +156,000 to +152,000, and the change for November was revised down by 10,000 from +266,000 to +256,000. With these revisions, employment gains in October and November combined were 14,000 lower than previously reported.
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In December, average hourly earnings for all employees on private nonfarm payrolls rose by 3 cents to $28.32. Over the last 12 months, average hourly earnings have increased by 2.9 percent.
https://www.calculatedriskblog.com/2020/01/december-employment-report-145000-jobs.html
https://www.reuters.com/article/us-usa-stocks/stock-futures-hold-gains-after-december-jobs-report-idUSKBN1Z91BD
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