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  • Bund yields close ~5bp higher outperforming USTs ~+13bp, post hawkish US CPI print.
  • US stocks also traded risk off vs Europe SXXP / SPX +0.1%/-1%; SPX recovering less of the CPI dip. Real Estate unsurprisingly is the weakest sector. Despite that, € Real Estate spreads were generally tighter.
  • Cash spreads were again resilient, with IG Cash overall unchanged, HY spreads tighter on lower bunds. CDS traced the macro move more closely with Main / XO closing +0.4 / +3.8. BATS 31s (+10) were a big mover again following yesterday's new issue, with IGIM 4-7 wider on the FIREIT interest (2-5 tighter there. On the FINS side PBBGR / AARB had another strong session, 10 to 20 tighter.
  • IG primary was quiet due to CPI with just Atradius T2 and BNS unsecured, but HY was active with Elo, Synthomer, Techem, TUI.

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