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CREDIT UPDATE

• Government bond yields oscillated wider before taking a leg wider on strong PMIs. DBR and UST yields left 7bp higher.

• Stocks are close to unchanged with SPX / SXXP -0.1%/-0.1%. Rates sensitive REITs (-1.4%) and Utilities (-2.2%) were the worst performers within the €IG issuer basket, with only Industrials and Energy marginally higher.

• €IG cash closes 1-2bp wider. THAMES bonds were up to 1pt lower on the accelerated UK election. VFC spreads were 3-8 wider after earnings.

• Primary was busy again ahead of UK half term with deals from Barclays, Philips, Pandora, Hochtief, Air Liquide, Raiffeisen, Enexis, EPH, Grenke, Alstom, Mondi, Aareal, Sydbank, Illimity and Sparebank all priced.

• CDS indices close wider with Main / XO +0.7/ +3bp.

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