Mnuchin deepens Thanksgiving chill by calling time on Fed bond support

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By David Rothnie
26 Nov 2020

US corporate bond bankers predict a final flurry of issuance before year end, though there have been no deals this week ahead of the Thanksgiving holiday, and after treasury secretary Steven Mnuchin moved to stop some quantitative easing.

Nevertheless, syndicate heads said the strong technical backdrop could encourage opportunistic issuers to prefund debt for next year.

Inflows into US investment grade bond funds and exchange-traded funds accelerated to $8.2bn in the week ending November 18 and investors are sitting on cash they hoarded cautiously before and ...

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