The cost of Euro credit default protection has decreased, concerns related to AI have subsided.

With the concerns related to AI alleviating and the market sentiment improving due to the prospects of rate cuts by the Federal Reserve and the Bank of England, the default protection cost for Euro credit bonds has decreased. Recently released inflation data from the US and UK show that price pressures are easing, increasing the likelihood of rate cuts in the coming months. Data from S&P Global Market Intelligence shows that the iTraxx Europe Crossover Euro high-yield credit default swap index fell by 3 basis points to 247 basis points. The iTraxx Europe Main Euro investment-grade CDS index fell by 1 basis point to 52 basis points.