MNI US Credit Weekly: Hyperscaler Supply Woes

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Executive summary:

• Spreads widened by 3.3bps dragged by heavy hyperscaler issuance and a resurgence of Middle East tensions.
• In macro, Chairman Warsh’s speech in Sintra reconfirmed his commitment to bring inflation down to target while the minutes from the June FOMC meeting showed policymakers are divided as to the direction of policy: this leaves the Fed in “wait and see” mode.
• Fund flows remained firm in credit while equity inflows also returned across all regions.
• Supply was above $25B estimates, with 19 issuers pricing $52B, led by Amazon’s $25B deal