The market continues to show signs of strength as the momentum factor pushes higher for the third straight day. The short side of the pair is lagging, and investors are buying AI infrastructure, particularly after ORCL results and the NVDA/NBIS deal. Meanwhile, rates have backed up, leading to a sell-off across the curve in US rates and USD strength due to inflationary impulses from a higher baseline for commodities. Despite this move in rates, the largest new issue day ever occurred in the IG credit market with $65.75B across 11 deals led by a $37B AMZN deal.

In today’s mid-day wrap, we focus on the near-term conclusion of Trump’s comments on Iran while the IEA announced the release of 400M barrels of oil, which is at the high end of expectations. However, oil prices are still up by 5% despite this news. The war between the FCI tightener and inflationary impulses from a higher baseline for commodities has led to a sell-off across the curve in US rates and USD strength.

The Software vs Semis pair is lower for the third straight session as software questions remain high amidst re-grossing on the short side for the second straight day. The AI at Risk continues to roll, with investors buying AI infrastructure particularly after ORCL results and the NVDA/NBIS deal. The Software vs Semis pair is lower for the third straight session as software questions remain high amidst re-grossing on the short side for the second straight day.

Investors have been using the cheapening to double down, despite the move in rates, and yesterday was the largest new issue day ever in the IG credit market with $65.75B across 11 deals led by a $37B AMZN deal. The war between the FCI tightener and inflationary impulses from a higher baseline for commodities has led to a sell-off across the curve in US rates and USD strength, with investors buying AI infrastructure particularly after ORCL results and the NVDA/NBIS deal.