Market participants are likely to face some heavy choices in the week ahead.
Like between golf, barbecue, beer, or “all of the above.”
The confluence of the beginning of a new quarter, with the imminence of earnings statements, and Wednesday’s Fourth of July holiday, means that many decision makers are either out of town or constrained from tapping the debt or equity markets.
Tuesday will see an early bond market closing, while just about everything will shut down Wednesday.
In addition, the markets are apparently less-than-thrilled with last week’s Federal Reserve action. The decision to cut rates by 25 basis points this time around, rather than what has become the obligatory 50, left virtually no one pleased.
The Dow Jones Industrial Average finished the week in another dead heat. Treasurys, which had been rallying, backed off, with the 10-year note yielding about 5.35 percent, off more than 20 basis points.
Corporate bonds generally followed suit, with yields, still low by recent standards, rising sharply on the week.
In the Pipeline
Look for a dry period ahead in terms of new issues.
Perusal of news reports and calls to investment grade syndicate desks yielded no word of any upcoming bond issues.
Junk, on the other hand, shows a smattering of new borrowing ahead.
Click here for last week’s Capital Markets column.