MNI EU Credit Weekly: Easy Does It

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Executive Summary: 

• Spreads tightened 4bp with risk on driven by rate cut expectations. Ongoing geopolitical tensions failed to derail sentiment. Low supply gave cash credit a technical boost.
• In macro, USTs twist flattened as inflation fears ebbed following payrolls. DBRs bear flattened following a hawkish ECB press conference.
• Looking ahead, the FOMC meeting next week should be the main event. A 25bp cut is expected.
• Supply fell to €7bn. Aggregate books were particularly strong with NICs snapping a widening streak as the average NIC fell by 2bp. A similar amount is expected next week.