Good morning and happy Friday!
Our Bespoke Morning Lineup is now out. Below is a brief snapshot of macro news events pulled from the intro to the Lineup. To view the full report and get news on individual stocks, click here if you’re already a subscriber, or sign up now for a 5-day free Bespoke Premium trial.
Snapshot: While S&P 500 index futures have certainly moved in response to Greece in the early hours of the US morning, they were in a relatively tight range overnight (6.5 points) and are currently at the low end of that range, 6 bps lower. Russell 2000 contracts are about unchanged, following the outperformance pattern of the last few days. Credit default swaps are pricing a relatively benign day, trading modestly tighter in Europe and opening slightly tighter in the US. European cash bonds trade wider slightly, at a ratio of 2:1 for high yield but a bigger move (1.7 bps versus 0.7 bps) in investment grade and much weaker breadth, 15:1 wider amidst 21 billion EUR of new issuance. The EUR is back in sell mode (-40 bps) as are most currencies versus the USD as yesterday’s pause in the greenback rally is forgotten, Bloomberg USD index +34 bps. Treasury yields are lower in price across the curve, with a minor bias to higher yields as the European bond markets sell off a bit, bunds +1.2 bps in yield to 25.8 bps on the ten year, and peripheral spreads mixed. Greek debt spreads are out 24 bps versus tightening for every market save Italy, which announced debt levels current as of January had risen to 2.166 trillion EUR. In commodities, WTI is taking a run at $46, off 1.3% and $3 above lows put in on January 29th. Brent trades down 98 bps, while precious metals are mixed and copper is down about 23 bps.