EU Close

* No clear direction in €IG today, Bayer continued to move wider (index lines 7-13bps wider) & outside that we don't see any strong curve movers in the index. iTraxx closed -0.2/-1.1, €IG equity eqv's +0.4%, strong performance from financials led by Citi & BofA - gains seem to be linked to MS upgrades (to overweight) on the names (incl. GS); “Reading the tea leaves, it looks like Basel Endgame will be lightened up...this opens the door for a significant increase in buybacks, as large cap banks have the highest excess capital levels ever" (MS; bbg). All other sectors ended with sub 1% moves. Primary priced ~€4.5b taking WTD to over €10b (c€18b).

* Rates saw bit more colour rising on strong Spain CPI (France & Germany inflation prints tomorrow morning) that was followed by firm GDP print. Belly rates finished ~+3 higher, swap spreads tightened -0.8bps. Outside of the two Euro inflation partials, focus tomorrow on US ADP Employment (Jan) & the FOMC decision (statement & presser noting QT remarks also in focus). We also get MNI's Chicago PMI (for Jan).

* Tech heavyweights Microsoft, Alphabet & AMD will report after the US Close - Microsoft & Insurer Chubb the only €IG issuers with earnings tonight - Chubb was affirmed by S&P at A & stable yesterday after S&P revised its insurer risk-based capital criteria late last yr.