US TSYS: Fed Holds Right Stance, Modestly Restrictive: NY Fed Williams

At least $10.3B in corporate bonds to price Wednesday, OMERS Finance and World Bank rolled to Thursday's order of business

• Date $MM Issuer (Priced *, Launch #)
• 03/12 $2.25B #Stellantis $500M 3Y +140, $750M 5Y +170, $1B 10Y +215
• 03/12 $2.2B #Amcor Flexibles NA $725M 3Y +83, $725M 5Y +103, $750M 10Y +125
• 03/12 $1.5B #SoCal Edison $850M 5Y +118, $650M 30Y +160
• 03/12 $1.25B #NetApp Inc $625M 7Y +130, $625M 10Y +140
• 03/12 $1.2B #Canadian Pacific Railway $600M 5Y +75, $600M 10Y +95
• 03/12 $650M #CGI Inc 5Y +100
• 03/12 $500M #Equitable Holdings WNG 30NC10 6.7%
• 03/12 $750M PBF Holding 5NC2
• 03/12 $Benchmark AES 7Y +175a
  • Expected Thursday:
  • 03/13 $1B OMERS Finance 5Y SOFR+69a
  • 03/13 $Benchmark World Bank 5Y SOFR+44a

• Stocks are holding firmer but off knee-jerk highs reached after this morning's lower than expected headline CPI inflation data. The tech-heavy Nasdaq outperforming in late trade. Currently, the DJIA up up 38.49 points (0.09%) at 41402.61, S&P E-Minis up 43 points (0.77%) at 5614, while Nasdaq climbs 244.6 points (1.4%) at 17690.88.
• Information Technology and Communication Services sector continued to outperform in the second half, chip makers supporting the former with Micron Technology +8.61%, Palantir Technologies +7.38%, Super Micro Computer +6.81%, NVIDIA +6.63% and Oracle +5.49%.
• Interactive media and entertainment shares supported the Communication Services sector with Netflix +2.75%, Meta Platforms +2.36% and Alphabet +1.75%.
• On the flipside, Consumer Staples and Health Care sectors underperformed in early trade, leading laggers in Consumer Staples included Brown-Forman -5.22%, Target -4.25%, Dollar General -4.06% and Hershey -3.79%.
• Meanwhile, pharmaceuticals and services shares weighed on the Health Care sector: Regeneron Pharmaceuticals -3.88%, Bristol-Myers Squibb -2.15%, West Pharmaceutical Services -1.84% and Biogen -1.75%.

• RES 4: 0.8530 76.4% retracement of the Aug 8 - Dec 19 ‘24 bear leg         
• RES 3: 0.8494 High Aug 26 ‘24 
• RES 2: 0.8474 High Jan 20 and a key resistance
• RES 1: 0.8462 High Jan 24   
• PRICE: 0.8430 @ 14:55 GMT Mar 12 
• SUP 1: 0.8378/8335 Low Mar 10 / 50-day EMA    
• SUP 2: 0.8299/41 Low Mar 5 / 3 and a near-term bear trigger 
• SUP 3: 0.8223 Low Dec 19 and a key support  
• SUP 4: 0.8203 Low Mar 7 ‘22 and a lowest point of a multi-year range

A bull cycle in EURGBP remains in play and this week’s extension reinforces the current bullish theme. The cross has breached 0.8419, 76.4% of the Jan 20 - Mar 3 bear leg. This paves the way for a climb towards 0.8474, the Jan 20 high and the next key resistance. On the downside, initial firm support is seen at 0.8335, the 50-day EMA. The short-term trend is in overbought territory. A pullback would allow this set-up to unwind.