Daily Market Color November 7, 2022Heavy Issuance Slate Pushes Yields Higher Bonds lurch lower after 15 companies issue debt. Today marked the highest number of bond issuers in nearly two months, which kicks off a busy issuance week that includes nearly $100 billion in back-end Treasury sales tomorrow. On balance, the sales helped contribute to the move higher in rates across the curve. The 2-year yield would end the day ~7bps higher at 4.74% while the 10-year yield rose ~6bps to 4.23%. Equities had a positive session, with the S&P rising ~0.96% and NASDAQ rising ~0.85%. Market prepares for midterm elections, where inflation and economic issues are top of mind for U.S. voters. Inflation and the broader economy remain front and center for voters as they head to the polls tomorrow. In recent years, midterms have led to political gridlock, which in turn has generally given way to a benign market environment free from dramatic policy shifts. Since 1950, the S&P 500 has averaged 15% returns in the 12 months after midterm elections, with no down years. Day ahead. Election day is tomorrow, in which 36 of 50 states will elect governors. Crude oil stock change data will be released at 5:30 PM ET.
