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Credit Sentiment Sours Ahead of Fed

CREDIT UPDATE

$IG prints are pointing to more weakness into mid-morning - index prints over 1bp wider now. Its been matched by CDX that is +2/+9bps, iTraxx following. €IG does look skewed wider but bigger move is coming from local swap spreads - 5yr +2.5bps today.

S&P's down -0.7% - its not financials driven - tech heavyweights (including those that reported last night - Microsoft & Alphabet) the main drag with most other sectors with sub 1% moves. In line with this $IG eqv's are +0.1% again muted sector moves outside of IT (-1.4%). Similar story in local equities (€IG eqv's +0.4%), RE names in the index +1% despite a -9bp move in belly rates. Financials in the green across all indices.

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