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Spreads vs. equities

CREDIT MACRO

€IG's relative exceptionalism continues even in the face of a pick-up in local supply. Yield investors in $IG won't feel their spread underperformance though; they are longer duration (4.5 vs. 7.2) and US rates have outperformed on this weeks rally (5Y: -20 vs. -12). The equity moves - in both our baskets and tech-skewed S&P500 - are yet to be noteworthy. S&P futures flat this morning.

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