05 August 2016 by lberuti
Days during which Non-Farm Payroll statistics are published are not known to be the busiest. Before they are made public, no one really wants to take any meaningful position, as the risk of being wrong footed is important, and after they are released, the week-end is dangerously close and who knows what might happen when markets are closed for 48 hours. Today was no exception and volumes were anaemic, but if credit indices traded sideways in the morning, they rallied in the afternoon on the back of better NFPs than investors had anticipated. Creit indices all closed near their tightest levels of the year, and the short term momentum favours the bulls at the moment. The charge tighter was led by UK names which outperformed once again on the back of the bond buying program announced yesterday by the BoE, even if, in the financial space, disappointing earnings from RBS checked the rally somewhat.