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CREDIT UPDATE
  • €IG cash has held onto morning moves, pointing to a 2-4bp close & fast closing the gap to recent lows (-5bps). Hard to point to yields supporting the move back in - rates are sideways on a quieter macro weak; bunds end +2bps today.
  • €IG basket was up 1% (SXXP +1.1%) earnings skewed to positive with 1%+ moves from Healthcare, IT, Financials, RE & Industrials.
  • Primary saw a tad more colour. Lack of recent corp supply may be driving strong demand - RTE and Sydney airport shorter lines pricing flat to inside our FV with strong cover/books.
  • US equities bid post-cash open, $IG looks to be moving firmly tighter as well - both looking past S&P PMI miss; rates -6bps on it.

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