MNI Credit Weekly: Rising Tide

Download Full Report Here

Executive Summary: 

• Spreads rebounded 4bp tighter on the week, reversing last week’s supply driven move amid firm sentiment.
• Trade optimism continues to buoy risk assets. Alongside hawkish rhetoric it led to the market pricing out FOMC cuts. Longer-end rates were little changed.
• Fund flows came in mildly positive for European credit with firmer flows in the US. In equities, European inflow strength continued in the face of US outflows.
• We had a healthy €15bn of supply this week. Expectations for next week approach €30bn.