MNI Credit Weekly: De-Escalation

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Executive Summary: 

• Spreads finished the week 5bp tighter. Tariff exposed Consumer Cyclicals led the move with 7bp tightening.
• Signs of a thaw in US-Sino relations, particularly from the US side, helped a macro recovery. Implied Fed pricing was little changed.
• Just €8bn of primary priced this week despite risk-on conditions. Surveyed expectations point to higher volumes next week despite the Thursday holiday.