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US Open

CREDIT UPDATE
  • CDX opened unch & is moving tighter now - follows a strong -1.1/-11bp move last night on Fed perceived optimism of a soft landing and absence of explicit pushback on timing of cuts in the 1H. Our Economist noting on the Q&A; "Powell doesn't categorically dismiss a potential cut in May or June, as he did with March cut back in the January press conference". Cuts to June are priced at 20bps now.
  • $IG cash prints didn't seem to find much support from the risk-on sentiment; closed +0.9/+1.7bps wider with no supply. Credit pointing to a better session today; Euro & Sterling IG are skewed tighter this morning, S&P futures +0.45% with low-vol in pre-market. Still muted/flat $ ETF flows yesterday while €IG/IEAC saw ~€210m in outflows adding to weakness this week.

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