MNI Credit Weekly: Truce-Led Tightening

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Executive Summary: 

• Spreads tightened 3bp this week, with stabilisation in the Middle East and positive signs on China-US talks supporting risk sentiment. Worldline grabbed the headlines, with the new WLNFP 5.5 30 trading at ~85 less than a month after issuance, following allegations of fraud enablement.
• In macro, softer data and speculation surrounding Powell’s successor helped rates bull steepen.
• Aside from EUR-HY which came in flat, Fund Flows were firmly positive for credit across the board.
• Supply was close to last week at €11bn through Thursday. Expectations see a slowdown next week as we go further into the summer season.