German supermarket group Metro AG was one of the few single-name credits to stand out today amid reports that it is considering an IPO of its Russian division.

The company declined to comment on the reports, which cited "sources familiar with the matter." Nonetheless, Metro's stock price rose 3% and its CDS spreads rallied 3bps to 108bps, the tightest level since July 2011. The rally in recent months is all the more impressive given that Metro was trading as wide as 287bps in July 2012.

If true, the Russian IPO would be the latest in a series of moves aimed at balance sheet improvement. Last year, Metro sold its chain of Real hypermarkets in eastern Europe to French group Auchan for €1.1bn, and the firm also cut its dividend.

Metro has outperformed most of its European rivals in the CDS market this year, but it still trades wider than Auchan and Carrefour. It will have to maintain its debt reduction strategy if it is to catch up.

Supermarkets aside, it was a relatively quiet session, with spreads losing ground on little fresh news. Profit taking was no doubt a factor after the Chinese-inspired rally yesterday. The Markit iTraxx Europe was 2.25bps wider at 82bps, while the Markit iTraxx Crossover widened by 3.5bps to 336bps. Both indices are within their recent trading ranges, and in this context little can be read into a daily movement.

Downbeat economic forecasts from the OECD may have contributed to the sell-off in credit today. The Paris-based organisation said that the global economy would grow by 2.7% this year and 3.6% in 2014. Both growth estimates are down by 0.4%.. Unsurprisingly, the OECD cited the US debt ceiling debacle and uncertainty around QE tapering as reasons for the downgrades.

The tension ahead of the Fed's latest policy meeting minutes, scheduled for later tomorrow, will probably ensure that spreads remain in a tight range.

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