North America
- Equities volumes surged last week but spreads remain wide. US Investment-grade volumes are low but liquidity is good.
- Primary Equities: We can expect IPOs in Health Care, Consumer staples, and Tech on Nasdaq.
- Data this week: Housing and Jerome Powell’s second annual testimony. Noteworthy: Some activity could be driven by Options Expiries and Indices Rebalancing.
- US axe data, which is within normal ranges, indicates a higher proportion of buying versus selling of credit.
Europe and UK
- Equities volumes are low but bid-ask spreads are tight. Volumes in Euro Investment-grade debt rebounded compared to the week prior and spreads remain tight for the year.
- Last week saw huge spikes in bilateral and off-exchange equities trading by the end of the week.
- Data: UK inflation rate, PPI numbers, Retail Prices on Wednesday. The main event will be the Bank of England’s interest rate decision on Thursday.
- EU axe data, which is within normal ranges, suggests a higher proportion of EU dealer asks versus bids of credit.
- GBP axe data, within normal ranges, suggests much higher net selling versus buying of credit.
