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EU Credit Close

CREDIT MACRO

• Rates traded in a narrow range with the bund closing unchanged, curve slightly more inverted.

• €IG equity basket ended +0.3% (SXXP +0.2%) broad-based but sub 1% gains led by financials (+0.7%).

• Main / XO closing -0.6/-2.0bp with a firm month end tone.

• IG cash closes 1-2bp tighter with quarter end buying likely helping spreads. Some longer dated bonds moved 5-10bp tighter on no news.

• THAMES opco closes wider, 20-30bp in € and 20-40bp in £ with the news that Kemble shareholders will not inject equity for now. Bloomberg quotes Kemble vonds as 16c, 12 points down, with some quotes showing even lower.

• Aroundtown continuing to move tighter (as we flagged was likely post earnings yesterday) led by 28's - curve finishing unch to -13bps.

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