Global markets held firm ahead of the much anticipated G20 meetings over the weekend to cap off one of the strongest June performances in risk assets with the S&P closing the month above 7% while credit tightened by around 20 bp. US credit was about 5 bp tighter for the week with energy and financials outperforming while pharma/health care faltered. Over the weekend the G20 meetings were interpreted as a success with the U.S. and China agreeing to restart trade talks while Russia and Saudi Arabia struck a deal to extend oil production cuts. Primary issuance was quiet with a couple deals of note including Honda and Charter Communications. The first week of July is expected to be quiet in the primary market with the Fourth of July celebrations keeping issuers on the sidelines.
Canadian credit was also about 3-5 bp tighter for the week on the back of global headlines while investors easily digested a rather busy primary market. Domestic issuers printed just under 5bn CAD of paper across four issuers last week. The highlight was Scotiabank printing 1.5bn of a 5-year NVCC at G+152. The deal was very well received with a decent concession and very little outflows of other NVCC or bail-in bonds.