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Daily Archives: 17th July 2018

17th July 2018

Holidays are coming, really!

MARKET CLOSE:
iTraxx Main

63.9bp, +0.4bp

iTraxx X-Over

289.9bp, +1.5bp

🇩🇪 10 Yr Bund

0.35%, -2bp

iBoxx Corp IG

B+130.4bp, +0.5bp

iBoxx Corp HY

B+389.7bp, +1.5bp

🇺🇸 10 Yr US T-Bond

2.86%, unchanged

🇬🇧 FTSE 100

,
🇩🇪 DAX

,
🇺🇸 S&P 500

,

Summertime blues…

It’s not getting any better in terms of activity – while the rest of the market is going sideways in terms of pricing. Admittedly, there was an uptick in issuance in the session, but mostly it was financials and covered bonds. There is an eerie disquiet around the plain vanilla non-financial IG corporate bond sector. These borrowers are probably mostly done until September.

The headline risks in the session were quite limited, save for a continued heap of warnings about how a non-deal Brexit would unleash irreparable decline in the UK economy (just like to doomsayers were warning pre-referendum). No matter, sterling assets didn’t really step out of line versus other markets with equity and rate markets all moving in tandem in the day.

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