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CDX opening -0.5/-2 tighter, after ~$19b in supply yesterday (WTD $30b) did little to secondary spreads ($IG closed -1.4 tighter). Short end spreads outperformed, despite still signs of yield buying out in long-end of Bristol's deal. Belly came wide, but books were well covered, tightening up to 35bps on IPT and bringing NIC's down to single digits. $ ETF flows were ~flat again.

€IG finally broke a trend of sub 1bp moves yesterday (closing -1.2 tighter) & look to be continuing that move with curves skewed tighter. Exceptions include a continued drag from PBB lines (S&P came o/n with a downgrade to BBB- Neg) & Siemens (bringing >€2b in supply). VFC mid's finally putting a pause on their rally (1-2bps tighter today) & similar story with Avis 26/30's that are unch.

In US macro, focus on retail sales (Jan, nominal) at 1:30pm/8:30 ET which comes alongside weekly claims (not a reference week), empire manufacturing survey for Feb (volatile, comes off very weak reading in Jan but forward indicators were +ve) & Philly Fed business outlook. Fed Waller remarks after London close (6:15pm/1:15pm ET) are not on MPol but our Eco notes Q&A leaves door open for vol/broader remarks.

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