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Market Wrap

CREDIT UPDATE


  • Bunds are sitting 4-5bps cheaper at most benchmark maturities – our DM team note the low volumes and quiet macro calendar though see some support for the wider FI space from the fall in Brent futures at -1% DoD.
  • Main/XO are sitting 1.5bp/10bp tighter with compression now back to 260bp and Main flat to the year-end level of 58bp. FICM is showing €IG/€HY +0.8bp/-4bp with Sub Fins outperforming within €IG (flat DoD).
  • SXXP is +0.2% - Healthcare and Tech are the two sectors in the red at -0.5% each, with Zealand Pharma selling-off by a further 5% in the wake of last week’s Eli Lilly obesity drug trial results while the tech decline appears more broad-based.

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