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Calm Prevailed

22 March 2016 by lberuti

European credit opened the day on a cautious note, and the tragic events in Belgium initially pushed indices wider as geopolitical risks come back into focus and isolationist movements are expected to gain further momentum. iTraxx Main and iTraxx Crossover touched 75bps and 310bps respectively, but that knee jerk reaction was short lived and they rapidly settled around 73bps and 303bps where they spent the remainder of the session. Volumes were low compared to a very busy session yesterday, but liquidity was never really tested. As one would expect, the travel sector was under a bit of pressure, but the daily variations were all contained and most of them are arguably within current bid-offer spreads.