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CREDIT UPDATE
  • Despite opening lower bund yields close 2bp higher after trending wider throughout the session. Strong Philly Fed was the main driver behind it.
  • Stocks traded higher following Middle East de-escalation with SXXP / SPX +0.2%/+0.5%. Of the IG issuer basket Financials, Utilities and Real Estate were all ~1% higher.
  • Cash was better again with limited supply, finishing 1-2 tighter. RBIAV was under pressure with the ECB set to take a hard line on the Russia business. THAMES bonds were again under pressure (up to 25 wider) following Hunt’s comments.
  • CDS indices close tighter with Main / XO +-1.7/-7.
  • Primary saw IG deals from JABHOL and GIS showing 10 / 0-5bp NIP.

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