Bonds

There's been a resurgence of interest in CLOs. Gross issuance is on track for a record year in Europe, while year-to-date issuance in the market has already exceeded 2023's full-year volume.

Wagers on aggressive easing by the Fed had been rising in recent days amid debate over whether the central bank should act when it meets next week.

Yields on policy-sensitive two-year Treasuries slid three basis points on Wednesday, while those on 10-year bonds were up by about the same amount.

Even as the world's economy expands at a solid pace, deficits have piled up thanks to heavy spending in the wake of the pandemic.

Yields across maturities rose by three to five basis points as volumes picked up in midday Monday trading in New York.

The energy company has asked banks to arrange calls with investors on Monday to discuss the offering. That makes it a candidate to sell debt as soon as Tuesday.

With the Federal Reserve poised to cut rates as soon as September, investors poured $245 billion overall into active and index mutual funds and exchange-traded funds in the first half of the year, according to Morningstar Direct.

Transportation, automotive, healthcare, and commercial real estate are the sectors most affected, but borrowers are doing better than expected.

The longest portion of the offering, an 11-year security, may yield 1.35 percentage point above Treasuries. The deal comes after the bank reported record profit as investment bankers and equities traders smashed expectations.

Optimism over lower rates spurred a shift into riskier corners of Wall Street — as money exited the long-favored safety trade of technology megacaps.