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Daily Archives: 10th April 2019

10th April 2019

May ‘drags’ on, ECB ‘Draghis’ on

MARKET CLOSE:
iTraxx Main

60.1bp, -1bp

iTraxx X-Over

254.8bp, -4bp

🇩🇪 10 Yr Bund

-0.03%, -2.5bp

iBoxx Corp IG

B+134bp, -0.5bp

iBoxx Corp HY

B+412bp, unchanged

🇺🇸 10 Yr US T-Bond

2.48%, -2bp

🇬🇧 FTSE 100

5993.28, (-0.37%)
🇩🇪 DAX

11073.87, (+2.87%)
🇺🇸 S&P 500

2955.45, (+0.24%)

Path of least resistance and all that…

Everyone is waiting for something to happen. And that includes the ECB by the looks of it, before it feels that it can act more decisively. The two main developing issues which have us gripped, though, are the Brexit process and the US/China trade tariff talks. There’s seemingly little progress or concrete news on either, although the former will likely throw up something imminently. In the meantime, markets are effectively treading water as they wait for a nudge to allow for some sustained direction.

Credit, though, has done well to trudge through the tedium which might be besetting other markets, and continues to edge tighter in spread terms, while primary is still throwing up a decent amount of deals across all sectors of the corporate bond market. It seems that borrowers are being as constructive as they can in pulling down fresh funding while investors have been more than willing to get them funded as they look to use up some of the heavy levels of sidelined cash.

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