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CREDIT UPDATE
  • €IG is skewed tighter led by HEIBOS lines (-16-30), Rolls-Royce (-13) after S&P upgrade, VFC (-4-7) continuing equity led turnaround and Tapestry (31s +0.4pts) on 101 call chances repricing. Movers in HY were the HEIBOS perp's (+1-3pts). Only >1pt weakness was the CABBCO 28s.
  • €IG equities are +0.1% (SXXP +0.4%, SPX -0.5%) no sector moving more than 1% in either direction with similar low vol in equities; AIA +6%, and TD -3% both moving on earnings. iTraxx continuing to sit range-bound this week, little changed today at 53.4/292.9.
  • Belly bunds on track for +5bp close, French August PMI's coming firm moved us a tad. US data was uneventful with weekly claims coming in-line and PMI's were mixed; services firmer but employment commentary a tad weak. Some hawkish support from Fed Schmid ('25 voter). UST's similar +6bps in the 5Y.
  • $IG cash is ~0.5bps tighter as supply slows down there (3 issuers). No issuance in our markets but mandate out for €Benchmark 5.5Y from TAG Immobilien (RE). Mondelez is pricing a 10Y in $s today.

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