MNI EU Credit Weekly: Tech Turmoil

Download Full Report Here

Executive Summary: 

• Spreads were marginally tighter on the week before today’s risk-off move; Nvidia results had soothed some earlier tech valuation fears before a sharp move lower, led by Oracle, late yesterday afternoon. Spreads finish 1.8bp wider as a result.
• In macro, the return of US data with September’s dovish NFP drove bull steepening and increased rate cut odds. Euro rates had a similar dynamic with Dutch pension transition remaining topical.
• Fund flows moderated in credit across both regions, while USD Govts and equities saw stronger inflows.
• Supply eased slightly. Despite book cover increasing, seven deals gave double digit NICs, six of which came on Tuesday. Expectations are for a slow down next week.