EU Close

€IG is pointing to a skew tighter to start the week - support from rates (-4bps) should help total return IG investors into the green as well. iTraxx closed -0.7/-5.5bp tighter, its been keeping within range vs. CDX. Stoxx finished +0.8% though earnings are still to come/likely to be driver of this weeks moves. Primary saw €7b eqv. price, books covered strong 4.8* though reported NIC's avg'd in the double digits. Focus tomorrow is on earnings - particularly busy in US pre-market that'll see Johnson & Johnson, P&G, General Electric, RTX, PACCAR & later Netflix report - all issuers in both € & $ markets. Macro stays quiet outside of early morning (London)/late night (ET) BoJ decision that is overwhelmingly expected to have no changes, with consensus & MNI looking for a hike in the April 26 meeting (full preview here; https://roar-assets-auto.rbl.ms/files/59585/BOJ%20Preview%20-%20Jan%202024.pdf). We also have the New Hampshire Primary tomorrow which our Political Risk Team summarises as a non-event now; "Trump is now given a 90.1% implied probability of winning the nomination, compared to just 7.1% for Haley. The primary risk to Trump's path to the nomination now comes not from Haley, but the various legal battles he faces at the state and federal level." Continuing signs of long-end yield buying in $ primary; MidAmerican (Aa2, A) has priced its Green Feb '55's through its curve at +98, tightening 37bps from IPT.