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CREDIT UPDATE
  • €IG is +1bp wider today adding to a volatile but net +4 move this week.
  • Thames Water led widening (+14-30) after proposing a business plan without shareholder approval for 56% hike in bills which Ofwat is likely to reject. Schneider also on the move (+6-11) after confirming reports it is in discussion with Bentley systems (€17b EV) on a strategic partnership.
  • TPR 27/31's were bid again cash prices at 102.9/102.2 now ahead of a expected FTC decision. In HY Altice was +2-3pts.
  • Bunds end +1 & +12 on the week - support for yield investors on last Friday's Geopol rally has been short-lived - total returns YTD remain negative.
  • Movers in equities included post-earnings vol from Netflix -8% and L'Oreal +5%. €IG basket ends +0.2% vs. SXXP -0.1%, on support from consumers (+1.1%).
  • No clear direction from $IG prints heading into their midday.

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