MNI EU Credit Weekly: Half Time

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Executive Summary: 

• Cash spreads tightened 1.4bps despite renewed U.S-Iran exchanges and primary pricing cheaper for choice. Earnings season officially kicks off next week with the major US banks reporting.
• In macro, re-escalation in the Middle East put limited upward pressure on Brent, leaving near term rate expectations largely intact. Long end yields rose by up to 10bps.
• Fund inflows remained firm in credit while equity inflows also returned across all regions.
• EUR IG supply was broadly flat week on week at just under €12bn. NICs were lower but still elevated.