Last week the new issue calendar almost met expectations and priced $29Bln, the monthly total now sits at $90Bln on estimates of $95Bln. Spreads were 3 to 13Bps tighter on lighter activity and secondary volume saw $1.1Bln of net client buying as spreads continue to recover from the start of the months sell-off.

This week’s estimates are calling for $20Bln of new supply that is expected to be front loaded as the summer slowdown kicks into high gear. This amount of issuance is rare for the second half of the month, But the issuance backdrop remains attractive with the average yield on US investment grade bonds near the lowest levels since early 2023. Great job by the Amerivet Securities team last week as we were a Co-Manager on $5Bln 5-part deal for Eli Lilly and Co-Manager yesterday $1Bln 30NC10 for Duke Energy.