European and US Credit: Weekly Chartpack An overview of credit markets

Research evidence excerpt

European and US Credit: Weekly Chartpack An overview of credit markets

8 June 2026

European and US Credit: FixedCredit Income

Weekly Chartpack

An overview of credit markets

◆ Spread moves were mixed in cash markets over the last Tom Russell, CFA

week, with EUR credit outperforming Credit Strategist HSBC Bank plc

thomas.russell@hsbc.com

◆ Strong US labour market data pushed Treasury yields higher +44 20 3359 5666

and scepticism over the AI rally cooled equities momentum Song Jin Lee, CFA

European & US Credit Strategist

HSBC Bank plc

◆ Meanwhile Middle East headlines contributed to oil volatility songjin.lee@hsbc.com

and further softening of risk sentiment +44 20 7991 5259

Dominic Kini

Green Bond & Credit Strategist

The recent equities rally took a breather on Friday, which alongside news of renewed HSBC Bank plc dominic.kini@hsbcib.com

strikes in the Middle East contributed to weak risk sentiment. In addition, stronger +44 20 7991 5599

than expected payrolls data out of the US helped push Treasury yields higher on

Friday. Despite all this, spreads have been relatively resilient. Most of the

decompression was in CDS rather than cash markets. In the near term, spreads are

likely to take their cue from whether the current ceasefire in the Middle East holds.

EUR credit strength was apparent across sectors and the capital stack, with a slight

steepening bias in the curve, top performing segments reflect the nature of the risk on

move with AT1s, HY and Hybrids leading the way (p6). In the US, all IG sectors

widened last week with Autos & Technology the worst performing sectors (p12).

Looking at recent fund flow data, the pace of outflows from USD IG appears to have

slowed and actually turned into inflows last week as EUR IG outflows intensified (p28).