MNI Credit Weekly: Summer Lovin'

Download Full Report Here

Executive Summary: 

• Despite a compressed week ending with Independence Day, spreads tightened 7bp with all sectors performing. The Big, Beautiful Bill provided the latest boost to sentiment. Seasonally slowing primary and firm quarter end flows were supportive.
• In macro, NFP and unemployment figures drove hawkish Fed repricing, while gilts were subject to vol. on ongoing fiscal uncertainty.
• Credit and Agg funds saw positive Fund Flows across the board. Equities were mixed, while Govts had outflows across the board.
• Supply was notably lower with under €6bn printing. NICs were once again lower, with our weekly average falling to 0bp. Expectations are for an even quieter week ahead.