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CREDIT UPDATE

• Government bond yields are marginally higher with DBR and UST both +2bps, central bank speakers having little impact.

• Stocks were a touch higher with SPX / SXXP +0.4%/+0.2%. Little single name volatility or sector dispersion within the €IG issuer basket, with all sectors less than 1% changed.

• €IG cash closes unchanged, tighter at the margin. THAMES bonds (+3-12) continue to drift, while EPEN moved +7bp on a primary mandate announcement. REITs’ recovery continues with ARNDTN (-10-20) and CPIPGR (-4-11) tighter and financials generally better bid.

• CDS indices close tighter with Main / XO -0.6 / -3.3bp, catching up on Friday’s risk on in the US afternoon session.

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