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Spreads vs. Equities

CREDIT MACRO

Risk-on rally in equities has not extended to credit spreads. Supply and rates (that are keeping a lid on yields) may be the x-factors.

Bunds are -10bps on the week strong outperformance on UST's +2bp move; growth concerns from PMIs early in the week paired with weaker inflation prints today were the driving forces. €IG spreads did underperform vs. $IG (+2 vs. -1).