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  • 2y/10y bunds closed -3bp/-5bp after tightening at the open on the RNZB decision and catching up with USTs. Modestly hawkish comments from the BOE’s Pill failed to impact much with 40bps of ECB cuts still priced through the remainder of ’24 and 19bps of easing priced through the September meeting.
  • Main/XO ended -1bp/-4bp at 53bp/290bp while €IG/€HY was +1bp/+3bp – all IG sectors wider and Energy continuing to underperform though is joined by Utilities in the wider MoM space (+1.2bp and +0.4bp MoM respectively vs. -2bp for €IG).
  • SXXP closed +0.9% while SPX was +1%. Notable €IG movers included Aroundtown +7%, Albemarle +7%, Cemex SAB-CPO +7%, Air Lease Corp -4%.
  • SX5E futures are +0.2% while SPX futures are flat. Later the Fed’s Bostic and Musalem speak. The focus will be on US June CPI though, which is expected to show a moderation in headline to 3.1% but with core holding at 3.4% (https://roar-assets-auto.rbl.ms/files/65159/USCPIP...). There are also US real June earnings and jobless claims, plus UK May GDP, trade and IP.

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  • 2y/10y bunds closed -3bp/-5bp after tightening at the open on the RNZB decision and catching up with USTs. Modestly hawkish comments from the BOE’s Pill failed to impact much with 40bps of ECB cuts still priced through the remainder of ’24 and 19bps of easing priced through the September meeting.
  • Main/XO ended -1bp/-4bp at 53bp/290bp while €IG/€HY was +1bp/+3bp – all IG sectors wider and Energy continuing to underperform though is joined by Utilities in the wider MoM space (+1.2bp and +0.4bp MoM respectively vs. -2bp for €IG).
  • SXXP closed +0.9% while SPX was +1%. Notable €IG movers included Aroundtown +7%, Albemarle +7%, Cemex SAB-CPO +7%, Air Lease Corp -4%.
  • SX5E futures are +0.2% while SPX futures are flat. Later the Fed’s Bostic and Musalem speak. The focus will be on US June CPI though, which is expected to show a moderation in headline to 3.1% but with core holding at 3.4% (https://roar-assets-auto.rbl.ms/files/65159/USCPIP...). There are also US real June earnings and jobless claims, plus UK May GDP, trade and IP.

GMT/Local

Keep reading...Show less