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Daily Archives: 5th February 2019

5th February 2019

Squeeze me tight

iTraxx Main

69.5bp, -2.2bp

iTraxx X-Over

304.5bp, -8bp

🇩🇪 10 Yr Bund

0.17%, -1bp

iBoxx Corp IG

B+155.2bp, -2.7bp

iBoxx Corp HY

B+481.5bp, -6bp

🇺🇸 10 Yr US T-Bond

2.70%, -2bp

🇬🇧 FTSE 100

6176.19, (+1.33%)
🇩🇪 DAX

12799.97, (+1.32%)
🇺🇸 S&P 500

3185.04, (+1.01%)

Looking for signs of life in corporate primary…

The opening sessions of the week have seen little corporate bond activity amid scant signs that we might experience a material pick-up as the week progresses. It would be nice if we are proved wrong. It just seems like we are going to get bogged down with plenty of excuses to stay sidelined as the European earnings pick up, the US is in the thick of its own earnings period and we have a few situations developing on the Eurozone macro front. The Fed’s sudden and more dovish stance might have quelled fears of an immediate meltdown, but they’re just putting off the day of reckoning.

It won’t save Italy from further economic weakness, a deterioration in its debt metrics, reduced levels of investment and a depressed consumer. It’s been a dire few days on the macro front for the beleaguered sovereign with confirmation of an ongoing contraction across both the manufacturing and service sectors. Nor will that Fed Dovishness help elsewhere longer-term, the Brexit debate reaches another crescendo next Tuesday, following a week of strategising within the UK government and between the UK and EU.

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