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CREDIT MACRO
  • Risk fared better overall today with OAT spreads stabilising. CPI (negative supercore) triggered a gap tighter in yields with DBR / UST closing -8 / -13bp.
  • Stocks opened in relief mode and jumped higher post CPI leaving SPX / SXXP +1.2% / +1.1%. Within €IG issuers, Real Estate was strongest on rates at +2.1%, with only Communications and Energy marginally in the red. Rentokil was +14% on Peltz stakebuiding, but no real credit impact for now.
  • €IG cash was slightly tighter (0-1bp) overall having been quite contained on risk off earlier in the week. Financials were mixed with some weakness in non-domestic banks, French books recovered slightly (up to 3bp).
  • Index reversed some of the recent widening with Main / XO closing -2.4 / -11bp.

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