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Daily Archives: 23rd October 2019

23rd October 2019

Focus back on macro

MARKET CLOSE:
iTraxx Main

50.6bp, unchanged

iTraxx X-Over

227.2bp, +1.5bp

🇩🇪 10 Yr Bund

-0.40%, -3bp

iBoxx Corp IG

B+116.7bp, unchanged

iBoxx Corp HY

B+399bp, unchanged

🇺🇸 10 Yr US T-Bond

1.75%, -2bp

🇬🇧 FTSE 100

6036.00, (+0.05%)
🇩🇪 DAX

12600.87, (-0.36%)
🇺🇸 S&P 500

3306.51, (+0.10%)

If only it were that simple…

An extension will be granted and we’re most likely heading for a general election. However, let’s not consume ourselves through November with Brexit. Time to move on.

November could be good for markets and, for the moment, credit markets have come to a standstill. Actually, most markets have. There is arguably a slightly better tone, if anything, to risk assets. As such, we have only moved moderately higher in equities these past few sessions, but more obviously tighter in credit amid little secondary activity, while government bond prices have started to claw back some gains as focus switches back to macro.

Of course, it’s gone all quiet on the US/China trade front with little news flow as to the current state of play in the negotiations. In credit, spreads are grinding tighter for choice, but there is nothing spectacular in this market happening right now. IG primary has slowed and become a little more hit and miss at the moment. Everything though might be about to change as we hone in on the resumption of the ECB’s QE purchases, due to begin from November 1.

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