Global credit leaked wider throughout the week given soft economic data out of Europe, the ongoing Brexit process and finally the impeachment proceedings against President Trump. US credit was generally 2-4 bp wider with energy underperforming while TMT held firm. Treasury yields whipsawed back and forth on conflicting headlines before finishing about 2bp lower. In the UK, the Brexit drama continues with UK’s top court ruling that Prime Minister Boris Johnson’s suspension of Parliament was unlawful. The combination of Brexit headline risk and underwhelming productivity data out of Germany and France left European credit weaker as well.
Canadian credit outperformed its peers, tightening by about 2bp with financials and utilities leading the way. The primary market slowed this week printing about 2bn CAD of paper across four issuers. Of note, Equitable Bank ($EQBCN) issued 200mm of a 3-year deposit note at a spread of G+145bp. The demand for short carry product provided plenty of interest for the bonds, tightening by 11bp over the week.