MNI EU Credit Weekly: Summer Lull

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Executive Summary: 

• Spreads tightened another 2bp with no major change to the macro picture and seasonally low supply.
• Mixed macro data left Fed pricing little changed, while technical pressure continues to steepen the DBR curve. The next Fed Chair remains topical with attention turning to Jackson Hole next week.
• Fund Flows remained positive in Euro-IG/HY, and USD-IG had a standout inflow.
• Supply was low with €5bn this week (all from fins for a second week running. Aggregate books were weaker with the average NIC slightly higher at 0bp. Expectations are higher for next week.