Forex News Australian CDS spreads modestly tighter in Asian trade with most constituents in iTraxx index narrowing on Wall Street recovery, oil price falls. Strategist says rally in equities sparked by better-than-expected results from Wells Fargo but notes bank is "very conservative" and always likely to outperform peers. Notes small volumes of GPT Group CDS traded out wider at 430 bps while most other CDS generally tighter. Expects modest tightening trend may persist for "a week or so" but broader view is for spreads to push out. Some fairly big U.S. corporates such as IBM, Merrill Lynch, Microsoft reporting in coming days, could add to widening moves. Amcor, BHP CDS also traded in small volumes today. Australian iTraxx last 148-150 bps from 155 bps late yesterday.
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