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  • €IG cash has shifted to a slightly firmer skew wider this afternoon - driver for weakness unclear - equities have moved higher into the close, rates remain low vol (-3bps) & $IG looks to be crossing back tighter even in the face of some large supply deals. WTD supply should for it should still stay within expectations ($30b) while supply locally was ~€9b bringing Monday/Tuesday's total to weekly expectations for ~€21b.
  • Weakness is again in financials - still WTD moves wider are only a fraction of last week & YTD outperformance. Curve movers were again on PBB Snr short-end lines (20bps+) & Elo/Auchan (+7-9) while InBev/ABIBB belly/long-end (+4-11) stuggled on €4b of supply. Strong performers included Thames water (-4-10bps) & InBev/ABIBB short-end on tender offers.
  • £IG looks more flat today, strong session for Close Brothers (-5-7bps) on mgmt comments around strengthening balance sheet in earnings.
  • Low vol in equities continues; €IG ended +0.5% vs. SXXP +0.3% - only sector mover was Energy (+1.7%) & Consumer cyclicals (+1.1%) latter on another strong session for Auto equities.

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