News

After the release of the initial unemployment claims data, U.S. Treasury yields continued to decline; the latest yield on the 10-year Treasury fell by 3.8 basis points to 4.453%.

BlockBeats News, June 4th, the initial jobless claims in the United States for the week ending May 30th were 225,000, higher than the expected 213,000. The previous value was revised from 215,000 to 212,000. (FXStreet)

Cancer therapy developer Syndax Pharmaceuticals announced on Thursday that it will issue $250 million of 2.25% convertible bonds due in 2031 through a private placement. As a result of this announcement, a certain exchange's share price plunged 8.1% pre-market to $16.85. The bonds have an initial conversion price of $24.76, representing a 35% premium over Wednesday's closing price of $18.34.From a market psychology perspective, although the 35% premium clause may seem relatively favorable to existing shareholders, the dilution expectation caused by the convertible bond issuance itself still triggered selling. The exchange's share price had fallen for four consecutive sessions prior, with a cumulative year-to-date decline of about 13% as of Wednesday. The company plans to use the net proceeds for general purposes, including working capital, R&D, commercialization, and business development expenses.Syndax, based in New York City, currently has a market capitalization of approximately $1.6 billion. Notably, all 14 analysts covering the stock are bullish, with 6 giving it a “strong buy” rating. Institutional data shows a median target price of $37. Whether this financing means the company is preparing for a potential major catalyst, and whether the stock price can absorb the short-term pressure from the convertible bonds going forward, remains to be seen.