The past week was a heavy one for the credits space, with weak US equities and various issuances weighing on the market. Credit spreads generally widened 3-5 basis points (bps) in a week where US equities posted a 2-3% drop due to growing fears of an AI bubble, and US unemployment reached 4.4%. On the supply side, the week started with Amazon.com, Inc. coming out with a USD 15 Billion of bonds across 6 tenors. Amazon’s bonds still drew heavy demand despite the surprising size. Later in the week, we also saw Bangkok Bank PCL issue bonds, while the Indonesian government issued a sovereign sukuk bond which is Sharia compliant. The Bangkok Bank 5-year paper had an initial price guidance of +115 bps and was priced at +82bps. Due to the slightly tighter than expected issue spread, the bond had a lukewarm reception in the secondary market.

• The US Unemployment Rate came higher than expected at 4.4% in September versus 4.3% in a Bloomberg Survey.
• The US Retail Sales grew 0.2% in September from the month previous, lower than the 0.4% forecast in a Bloomberg Survey
• The US Nonfarm Payrolls month-on-month came in higher than expected at 119,000 in September versus 52,500 in a Bloomberg Survey