MNI Credit Weekly: Holding Pattern (Updated)

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Executive Summary: 

• EUR spreads tightened marginally with little sector dispersion. Tariff rhetoric took a back seat with Ukraine taking the policy focus. Higher NICs indicate more balanced risk appetite here.
• Macro saw lower rates over the week with the FOMC revealing a slower pace of QT. Bunds outperformed treasuries even with Germany’s fiscal package confirmed.
• EUR IG and HY saw small outflows. Both segments had inflows in the US, with a skew to HY. Equities remain in favour with Europe seeing particularly strong inflows.
• €14bn of IG supply landed close to expectations. NICs continue to trend wider. Supply expectations for the week ahead are similar.