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CREDIT UPDATE: Midday Wrap

CREDIT UPDATE
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  • We are skewed ~1bp tighter and likely catch-up to the risk-on last night in the US; $IG/HY cash closed -1.2/4.3 vs. us -0.4/1.4. Bunds +4bps despite continuing quiet macro.
  • Movers in IG include CityCon snr 29s +18bps continuing to face pressure after a profit warning and CEO resignation. CK Hutchinson 28/31s are also +14-16bps - potentially related to M&A risks in the sector.
  • In HY movers include IUTECR 26s +1.3pts, LPERST 26s -1.5pts and Auchan curve continuing to see vol led by the 28s this time; -1.2pts/+45bps.
  • €IG equities are +0.1% (SXXP flat), RE -0.9% on rates. Single name movers include PBB -6%, Redeia -5%, BPER +6%, GSK +5%.
  • US risk is mixed ahead of US CPI; CDX -0.2/-1 while S&P futures are -0.2%. Delta kicking off Airline earnings with slight margin miss; -6% in pre-market while peers are holding relatively mute (United -3%, American -2.5%, Southwest -1.5%).
  • US Sept. CPI ahead at 1:30pm London, consensus looking for core at +0.2%m/+3.2%y from last month's +0.3%/+3.2%. Our economist notes a sizeable skew toward a higher outcome with MNI's survey of unrounded estimates at 0.26%m.
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  • We are skewed ~1bp tighter and likely catch-up to the risk-on last night in the US; $IG/HY cash closed -1.2/4.3 vs. us -0.4/1.4. Bunds +4bps despite continuing quiet macro.
  • Movers in IG include CityCon snr 29s +18bps continuing to face pressure after a profit warning and CEO resignation. CK Hutchinson 28/31s are also +14-16bps - potentially related to M&A risks in the sector.
  • In HY movers include IUTECR 26s +1.3pts, LPERST 26s -1.5pts and Auchan curve continuing to see vol led by the 28s this time; -1.2pts/+45bps.
  • €IG equities are +0.1% (SXXP flat), RE -0.9% on rates. Single name movers include PBB -6%, Redeia -5%, BPER +6%, GSK +5%.
  • US risk is mixed ahead of US CPI; CDX -0.2/-1 while S&P futures are -0.2%. Delta kicking off Airline earnings with slight margin miss; -6% in pre-market while peers are holding relatively mute (United -3%, American -2.5%, Southwest -1.5%).
  • US Sept. CPI ahead at 1:30pm London, consensus looking for core at +0.2%m/+3.2%y from last month's +0.3%/+3.2%. Our economist notes a sizeable skew toward a higher outcome with MNI's survey of unrounded estimates at 0.26%m.