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CREDIT UPDATE: € Credit Close

CREDIT UPDATE
  • Bunds were in a tight range for the morning before a strong Jobless Claims print took yields sharply higher. DBRs / USTs close +8/+9bp.
  • Stocks were also little changed to start before reacting positively to the labour market data. SPX / SXXP are +1.3%/+1.2% currently. €IG equities are up 1% with Consumer Discretionary and Tech leading the move. Communications and Utilities lagged, marginally lower on the day. Notable movers include Walmart +7%, Origin Energy -9%, Kojamo -6%.
  • €IG cash closes unchanged again. ROLLS is up to 25 tighter on the Moody’s upgrade. ORGAU is 6 wider post earnings. ARNDTN is up to 14 tighter following GCYGR strength yesterday.
  • CDS closes firmly tighter again having opened better and gapping in on US data with basis compressing. Main / XO close at 55.5 / 300, -3.5/-15.

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