MNI Credit Weekly: Riding High

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Executive Summary: 

• Trade sentiment supported risk sentiment for the second consecutive week, with spreads 5bp tighter. Compression was evident with Financials, Real Estate, Energy and Consumer Discretionary all performing.
• The Sino-US tariff pauses supported macro. Implied Fed rate cut pricing faded before soft US inflation balanced that somewhat.
• Fund flows firm up for Euro IG but spotlight for strength was in US HY and equity inflows
• It was the busiest supply week of the year, in line with expectations. Surveys point to an even bigger week ahead