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  • 2y/10y bunds ended Friday +1bp/+4bp after following USTs lower after headline payrolls came in stronger-than-expected. WoW moves stood at +2bp/+10bp.
  • Main/XO were +1bp/+4bp bringing WoW moves to flat/+3bp compared to CDX IG/HY +1bp/+9bp WoW.
  • €IG/€HY cash closed flat/-1.5bp to give WoW moves of -4bp/+6bp – on the week we saw longer dated €IG spreads outperform (7-10yr spreads -6bp vs. 1-3yr spreads -1bp) while €IG Tech bonds outperformed at -6bp (though still underperforming YTD at -18bp vs. -29bp for wider €IG) while €IG Basic Ind underperformed at -2bp (second worst YTD performer at -21bp).
  • SXXP ended Friday -0.8% bringing WoW moves to -1.2% and YTD moves to +6% (vs. -1% and +9% for WoW and YTD SPX moves). YTD we’ve seen Autos, Banks and Tech outperform with gains of 12-15% while Personal Care, Real Estate and Utilities underperform with losses in excess of 5%.
  • Asian equities are streaming mixed but broadly higher on NFP-related optimism though CSI 300 underperforming with sentiment weighed upon by a winding up petition for Shimao Group. Brent is trading back below $90. Up this week we have:


GMT/Local

Impact

Country

Event

2301/0001

UK

KPMG-REC Jobs Report

0130/1130

**

AU

Lending Finance Details

0500/1400

JP

Economy Watchers Survey

0545/0745

**

CH

Unemployment

0600/0800

**

DE

Trade Balance

0600/0800

**

DE

Industrial Production

1530/1630

UK

BOE's Breeden Panellist at 'Towards the future of the monetary system'

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

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