Daily Archives: 23rd July 2018

23rd July 2018

There’s no holding him back

iTraxx Main

65.5bp, -0.3bp

iTraxx X-Over

291.6bp, -2.3bp

🇩🇪 10 Yr Bund

0.41%, +3bp

iBoxx Corp IG

B+131bp, -0.5bp

iBoxx Corp HY

B+387bp, -2.5bp

🇺🇸 10 Yr US T-Bond

2.95%, +6bp

🇬🇧 FTSE 100

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🇩🇪 DAX

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🇺🇸 S&P 500

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Turning protocol on its head…

The markets are now into the holiday season and that means activity will largely grind to a halt. It had already shown signs of it last week, but the pace dial is really set to ‘slow’ now. We will get a trickle of new issues in primary, secondary activity will be hugely dominated by the ECB – even if the number of bonds they bag falls over the summer weeks, leaving the broad direction of the spread markets at the mercy of the headlines. There’s been and will continue to be plenty of those headlines, while unfortunately, the good news in those headlines is a little light on the ground at the moment.

Most of what is deemed to be bad – or it’s delivery is not what we might have been used to – comes from the US President. Trump has had a dig at the Fed (on interest rates), praised Putin, threatened to impose import tariffs on all Chinese exports to the US and for good measure thrown in a currency manipulation jibe at both the Chinese and the EU. And that was just last week. This week? He kicked off with a warning aimed at Iran’s leaders.

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