After a better than expected CPI print in the US, the iTraxx Crossover on Thursday morning opened at 380bps, the tightest level of this year. But despite the optimism around soft landings, rates remain elevated, if a couple of hikes or so away from their terminal points, as core inflation stays high and central bankers worry about wage inflation. 

This narrative has been around for some months — albeit with a brief redraft around SVB and CS — there has been more of a change at the longer end of yield curves, as recession risks recede and rate cuts expectations fade.