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Daily Archives: 11th April 2018

11th April 2018

To be forewarned is to be…

MARKET CLOSE:
iTraxx Main

57.4bp, +0.3bp

iTraxx X-Over

284.8bp, +4.4bp

10 Yr Bund

0.50%, -2bp

iBoxx Corp IG

B+106.3bp, unchanged

iBoxx Corp HY

B+325bp, unchanged

10 Yr US T-Bond

2.78%, -2bp

FTSE 100

7,877.45, 18.28
DAX

13,169.92, 92.20
S&P 500

2,724.44, -8.57

Batten down the hatches!

There may be trouble ahead

Trump’s latest tweet, readying for an attack on Syria and warning the Russians that the missiles were coming had the markets paying much more attention to the situation in the Middle East. With the US on the brink of launching some kind of offensive on the Syrian state, the Russian threats of retaliation are also going much further than ever before.

The markets weren’t busting a gut to break out of tight ranges before the tweet, but did following it – and moved sharply lower. ¬†Safe-haven government debt moved from being unchanged to being better bid as the tensions rose.

Credit primary, though, was again busy and we finally had a spate of non-financial corporate borrowers looking to get some funding in. There was no stopping the primary market when all others might be losing their poise into the macro and/or geopolitical emerging event risk. Depending on how the situation in Syria plays out overnight, that might be different in Thursday’s session – and might just bring the week’s activity to a premature end.

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