European credit default swap indexes were mixed on Friday, but the overall direction was tighter. By 1528 GMT, the investment-grade Markit iTraxx Europe index was at 90 basis points, according to data from Markit, 1.25 basis points tighter versus late on Thursday. The Europe index had edged wider earlier in the session.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 566.50 basis points, 0.50 basis points wider, but off its widest point for the day. "Inflows continue and the primary (bond) market remains strong," credit strategists at Citi said in a note.
"Even unrated first time issuers such as Evonik have found their paper enthusiastically received. As the steady decline in European Central Bank auction sizes helps show, the world is still awash with liquidity. To us that means good news for credit."