On The Backfoot

Core global FI markets have traded away from best levels during the last hour or so.

• TY, Bund and gilt futures all registered fresh session lows, but ranges remain contained and the move has pulled back from extremes.
• No overt headline drivers for the move, with some looking to $IG issuance as a potential trigger.
• On that front, our credit team has flagged that $30bn of $IG corporate supply is expected this week, with macro risk events meaning that the issuance schedule will be front loaded.
• They go on to note that secondary market spreads are relatively unchanged, meaning credit markets aren’t surprised by the issuance at present, playing down $IG supply as a meaningful driver.