MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EU Close

CREDIT UPDATE
  • It's been another step wider but more harsh today and not limited to normal high-beta names. A mix of sectors seeing double digit widening including Autos, Airlines, Retailers and some Financials. Tighteners were limited to Thames (-18-45bps) who is continuing a reversal in.
  • It should help us move past French-election linked wides set in June but unlike $IG we will remain firmly tighter YTD - at least for now. Expect to see some daily move records broken on today's close - unclear if it will be double digit.
  • We said early on Friday that stress in IG spreads did not show in equity baskets or HY spreads; that was short lived on the day and continues to be today; €IG equities -2.3% (SXXP -2.1%, SPX -2.1%) led again by Financials (-5%), Materials (-3.8%), Utilities (-3.6%), IT (-3.4%) and consumer cyclicals (-3.2%). Out of the 513 members in our IG basket only 14 ended in the green and out of those only >1% movers were OCI NV (+15.5%) on asset sale announcement, Kellanova (+13%) on potential bid from Mars and AIA (+2%). Similar story in HY with only 6/142 rising; that included Branicks (+4%), Ceconomy (+1.5%) and Wizz Air (+1%). As we mentioned earlier losses in equities were lead by Japanese names.
  • Movers in HY credit included Auto Parts name STPRAU26s (-3pts), FONFO 29s (-2.4pts), Benteler 28s (-2.2pts) and Kemone 28s (-2pts). Moves from larger issues included Forvia (-0.4-1.2pts), Air-France (unch to -1.2pts) and Avis (-1pt).
  • Belly bunds end +1.5bps a stunning reversal from the -12bp lows we were looking at. It's mostly come on the firmer than expected ISM services print of 51.4 (consensus 51, prev. 48.8). iTraxx has reversed with sentiment now only +2/+8bps. Swap spreads also heading for a mute -0.4bps close after spiking +2bps at midday.
  • To reiterate our economist view is, despite BLS saying no impact from Hurricane on Friday's July employment numbers they remain sceptical given 1) hours worked dipped, 2) those not able to work due to bad weather spiked and 3) temporary layoffs accounted for almost 3-quarters of the rise in unemployment on the month. Still they recognise it was a dovish/weak report.
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.