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CREDIT MACRO
  • Risk off returned today with French risk again under pressure, OATs 4-5 wider with Macron’s approval rating at a 4 year low. A surprise negative US PPI print took bund yields from slightly higher to lower. DBR / UST closing -1 / -4bp.
  • Stocks underperformed in Europe accordingly with SPX / SXXP -0.2% / -1.3%. Within €IG issuers, all sectors finished red with Financials and Consumer weakest at a little over -2%.
  • €IG cash widened 1-2bp overall. Issuing names RKTLN, BRITEL, DELL and HEIGR widened 4-10bp highlighting the fragile state of credit here. French banks were 2-4bp wider.
  • Index gave up yesterday’s recovery with Main /XO closing +3.1 / +12bp.

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