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CREDIT UPDATE: € Midday Wrap

CREDIT UPDATE
  • Rates are little changed with USTs closed for Independence Day. OATs are close to unchanged following a firm auction, DBRs +2bp currently.
  • Stocks are higher again following late strength in the S&P after our close. SPX / SXXP +0.1/+0.7% currently. Notable €IG single name movers include Smith & Nephew +8%, Continental +8%. Financials are the leading sector.
  • €IG cash is firm with the index 1-2bp tighter. THAMES is a touch wider again; CARDFP, SESGLX, EJRAIL among the best performers. Nothing from primary with the US holiday.
  • CDS is also tracking tighter with Main / XO -0.9/-3bp.

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