MNI EU Credit Weekly: Drought Conditions

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Executive Summary: 

• Cash spreads were firm this week. The earnings season has been strong, geopolitical volatility toned down, and supply was almost entirely absent.
• In macro, Central Bank hiking expectations have been reduced. The US Labour market is cooling; oil prices have come down; and the S&P 500 is at all-time highs.
• Fund flows rebounded for credit led by US inflows.
• EUR IG supply slowed further with just a single 12yr bond issued by Eurogrid this week