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CREDIT UPDATE: € Credit Close

CREDIT UPDATE
  • Bunds were well bid this morning following weak IP data from core Europe. Rates were volatile post a soft NFP print, with Williams and Waller speaking soon after. DBRs/USTs close -4/-7bp.
  • Stocks had a mixed session, rallying into NFP presumably on short covering, but selling off this afternoon with Tech heavy again. SXXP / SPX are left -0.8%/-1.3%. €IG equities are -0.8% with Consumer Discretionary -2%. Real estate continues to outperform. Notable movers include Elis -16%, Grenke -12%, Raiffeisen -6%.
  • €IG cash closes shy of 1bp wider. ELISGP +14 on potential M&A; higher beta names including airlines, autos and reverse yankees were up to 6 wider. VZ was up to 5 better recouping some of yesterday's move wider. Real estate continues to show tightening momentum. RBIAV widened up to 15bp with shares in its Russian subsidiary frozen. GLJGR was up to 12 wider following renewed scrutiny from Bafin.
  • CDS was well offered pre-data with hedges seemingly reduced. That reversed with this afternoon’s risk off. Main / XO close at 56/303 +0.6/+2.

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