The credits market saw a stronger weekly performance, as US President Donald Trump’s tariff deals spurred a rally across risk assets. The start of the week was soft, as investors opted to remain sidelined ahead of the US Federal Reserve’s (Fed) rate-setting announcement and lingering geopolitical concerns in South Asia. With the Fed holding rates as expected and US Fed Chair Jerome Powell keeping a wait-and-see approach, the market quickly shifted to tariff headlines. The Trump administration announced it secured a trade deal with the United Kingdom, while stating there are “more to come.” Treasury yields spiked higher as tariff-related growth concerns eased, while stock indices pared much of their April losses. As the US and China managed to finalize a trade deal over the weekend, the risk-on action resumed. US Treasury yields were higher by 10 to 20 basis points (bps), while credit spreads tightened by 10 to 15 bps.

• The US Final Wholesale Inventories printed lower than expected at 0.4% versus a market estimate of 0.5% month-on-month in a Bloomberg survey.
• The US Unemployment Claims were lower than expected at 228,000 versus a market estimate of 231,000 week-on-week in a Bloomberg survey.
• The US Trade Balance was higher than expected at -140.5 billion versus a market estimate of -136.8 billion month-on-month in a Bloomberg survey.