May 15, 2024 15:28 GMT
€ Credit Close
CREDIT UPDATE
• Government bond yields opened lower and took another leg post CPI (lower than expected). Bund yields close 12bp lower, treasuries 8bp lower.
• Stocks also jumped on the data, with SPX / SXXP +0.7% / +0.5%. Within the €IG issuer basket, real estate was the best performing sector (+3%) while energy and autos were the only ones in the red.
• €IG cash closes ~1bp wider. Some cash price quoted bonds skew the spread somewhat; unchanged seems a more accurate reflection. $ corps are ~1bp tighter with fins unchanged. IAGLN 29s up 70c following 2 notch Moody’s upgrade. AAREAL is a strong performer in fins following earnings.
• CDS indices close better with the risk on tone. Main / XO -1.7 / -10.
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