MNI Credit Weekly: Broad-based Strength

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• Spreads were 2.6bps tighter on the week led by Financials. We saw a general spread compression as higher beta names performed. Corps tended to respond well to good corporate earnings and largely ignored weaker news.
• Macro was benign with Equities across Europe up 3% on average. Trump Tariffs fears dominate the headlines. So far, the reality seems to be taken well, aided by Ukraine peace talks. Tuesday saw a high CPI print which caused rates to spike, but PPI on Wednesday had several PCE inputs which pointed to a more nuanced reading. This allowed Gov’t bond markets to recover.
• Fund flows continued to see inflows at pace into $/€-IG while HY remained mild. European equities saw their first inflow in 19 weeks and at ~$2.5b, their largest since January 2023.   
• €16.9bn of Primary supply for Corps and Fins was in line with expectations and well received with issuance on average 3bps inside MNI Fair Value.