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Daily Archives: 21st October 2019

21st October 2019

Never-ending Brexit drama

MARKET CLOSE:
iTraxx Main

50.8bp, -1.6bp

iTraxx X-Over

225.8bp, -5.2bp

🇩🇪 10 Yr Bund

-0.35%, +4bp

iBoxx Corp IG

B+117.5bp, -0.5bp

iBoxx Corp HY

B+399bp (-4bp)

🇺🇸 10 Yr US T-Bond

1.78%, +3bp

🇬🇧 FTSE 100

6154.34, ERROR
🇩🇪 DAX

12946.89, (+2.04%)
🇺🇸 S&P 500

3333.69, (+0.54%)

Give us a break…

It might have been a positive start to the week, but the Brexit-parliament shenanigans continue to hang over the market like the proverbial sword of Damocles. Once again, Parliament was denied a vote on the Brexit deal agreed between the UK and the EU. Nevertheless, even sterling assets held their ground, as the market probably still anticipates that PM Johnson will eventually get his deal through the House.

Sterling hovered just a few ticks below $1.30 (effectively unchanged in the session), Gilts were better offered (yields higher) and the FTSE underperformed (was flat) versus other sharply higher equity markets. We’d think that UK stocks will rally harder if a deal is passed. Credit markets were in good shape, spreads tighter and we added another €2.1bn in primary to the IG non-financial total, as this market heads for a record year.

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