Midday Wrap

CDX opening +0.2/+0.5, S&P futures -0.4% ahead of Powell/Lagarde at 2:30pm London and US Job Openings at 3pm.

• €IG is skewed slightly tighter adding to yesterdays -5.6bp step in. Thames the only curve mover in both €IG (+4-11) and £IG (-2 to +13). Grand City is -1-8bps tighter on tenders as it prices it's new 5.5Y. It has come alongside CIBC, a DB SNP Mandate and some fin covereds - i.e. €IG still remains mute. Kelvion adds to the already long HY pipeline with another floater. Others from yesterday were; Kiko (floater), Applus, Vodafone Spain, Eesti Energia (hybrid) and Phoenix Pharmahandel.
• €IG equity basket is -0.4% (SXXP -0.6%, S&P futures -0.4%) in muted sector moves. Energy is +1% (WTI +2.5%) while Financials -0.7% paring some of yesterday's +1.8% gain.
• Single name equity moves from Sodexo (-5%) after earnings (dislocated & rich curve but no major red flags for credit). Insures also under pressure (Swiss Re -5%, MunichRe -5%) after Hurricane Beryl in the Caribbean grew to cat. 5; it is only the 2nd to reach that level this early in the June-Nov Atlantic hurricane season.
• Only movers in €HY index are Atos 29s (-4pts) and retailer HSE's single 26s (-3pts), now at €42.8 and follows S&P moving to CCC+ last week. It was priced at par/5.625% 3 years ago.
• Bunds are flat after Eurozone CPI came largely in line; core was 2.86% vs. c2.9%. Powell/Lagarde ahead alongside US Job openings for May.