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CDX weak on open; risk otherwise looks fine

CREDIT UPDATE

Weak open for CDX (+0.7/+3.5) taking iTraxx (+1.8/+7) with it. No red flags; early $ETF flows from yesterday are firm, $IG/HY closed +0.8/-0.8, S&P Futures -0.2%, €IG skewed slightly tighter. S&P June PMI's up at 2:45pm London, Euro area missed lower with general trends the same; continued weakness in manufacturing while services remained expansionary. UK also printed weaker but added "quickening of input cost inflation" and the volatile real retail sales (for May) were firm at +2.9% MoM (ex. auto). 5Y Gilts -4, Bunds -7.

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