MNI EU Credit Weekly: Macrosoft

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Executive Summary: Macrosoft

• Spreads moved over 1bp tighter with only Tech wider, led by a widening in Teleperformance against limited newsflow. Microsoft’s soft cloud-computing results again drew attention to the AI outlook and the scale of capex commitments.
• Macro this week saw a hawkish shift in Fed leadership and a steady FOMC, supporting the USD as metals pulled back from highs. Meanwhile, the ECB and BoE are expected to remain cautious.
• Fund flows were firmer for credit even in the face of weak Govt inflows. Record setting Chinese equity outflows continued.  

• Supply was broadly flat at €12.2bn with flat NICs on average. The lack of a slowdown into the start of earnings season means YTD issuance is up double-digits YTD. Supply is seen slowing next week.