Bonds

Treasuries have returned 1.7% this month through Aug. 28, on pace for a fourth straight monthly gain, according to the Bloomberg US Treasury Total Return Index.

In the blue-chip bond market, a democratic victory would be supportive for basic industry, capital goods and utilities sectors, but a negative for telecoms, technology, banks, and autos.

Economists are also forecasting faster and deeper cuts to borrowing costs over the next year, and see the central bank reducing the policy rate from the current 4.5% to 3% by next July.

In the run-up to Powell's Jackson Hole speech, Treasuries tumbled across the US curve, with the move led by shorter maturities.

The number of leveraged positions in Treasury futures has risen to an all-time high ahead of the central bank's annual economic symposium in Jackson Hole, Wyoming.

Fora Financial Asset Securitization, 2024-1, is the first for Fora Financial since 2021, and its third securitization overall. Tier 2 saw the greatest shift in credit distributions among the six credit tiers since the last deal.

Traders are pricing in 34 basis points worth of easing at the Fed's September gathering, trimming their expectations from a day earlier — and lowering the odds of a half-point cut at the next central bank meeting to about one-third.

The company is selling bonds in five parts, and the longest portion of the deal, a 40-year note, will yield 1 percentage point above Treasuries.

Many on Wall Street agree that an abrupt end to quantitative tightening, or QT, is unlikely, with policymakers signaling its rolloff of Treasury holdings will finish by year-end.

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.

Data4's steps to raise funding comes after Britain's Vantage Data Centers last month completed the first-ever asset-backed securitization deal for data centers in Europe.