Global credits mostly saw bonds move wider last week on risk-off headlines and weak sentiment. There weren’t many catalysts that came out at the start of the week, but players were keen to offer bonds. The widening move progressed later in the week following the release of the Revelio Public Labor Statistics, which provided markets an alternative view of US labor market dynamics while the Bureau of Labor Statistics is unable to publish any official reports due to the government shutdown. The data showed about 9,100 nonfarm jobs were lost in the US in October, which pushed credit spreads to further widen. Additionally, the widening move was also partly because issuers came out with additional supply in the primary market. With this, US Treasuries twisted steeper with 2-year papers down 1 basis point (bp) and 30-year up 5 bps. Sovereign spreads ended 2 -3 bps wider, while investment grade corporate spreads 3-7bps were wider. Credit default swaps, on the other hand, were unchanged to 8 bps wider.

• The S&P Global US Manufacturing Purchasing Managers’ Index in October was 52.5, a tad higher than the preliminary reading of 52.2. A reading of 50 indicates an expansion.
• The US ADP Employment Change in October was higher than expected at 42,000 versus 30,000 in a Bloomberg survey
• The University of Michigan’s US Consumer Sentiment Index fell to 50.3 for November versus 53 in a Bloomberg survey.