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EU Midday

CREDIT UPDATE
  • €IG is skewed tighter amidst another holiday in parts of Europe including France & Germany. Thames 27/28s continuing to lead widening (+7/+10), tightening broad-based & led by high-beta RE names; Aroundtown (28s -5) & CPI (31s -6).
  • iTraxx is -0.4/-2.3, mostly catching up to the risk-recovery/bid late into US Friday's close. $IG finished 1b tighter & mute over the week - which is in-line with us. €IG equities are +0.3% (SXXP +0.2%) this morning with no blowouts to flag. S&P futures +0.1% & similar low vol in pre-market,
  • Primary is kept open with United Utilities £27Y (FV above) with some mandates including brewer Molson Coors & Utility EPH in Euro deals and Clarion with £33Y. Supply expectations are only ~€5b lower locally & unch in $ - both point to a still active week ahead.
  • ETF flows were mute to end the week & though supply is yet to have any significant impact in secondary we are seeing reports emerging from US of high dealer inventories.
  • Bunds flat with only Fedspeak ahead today. Quieter week for macro more broadly with May PMIs across US & Europe, weekly initial claims (reference week for payrolls) & Fedspeak the main events.
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  • €IG is skewed tighter amidst another holiday in parts of Europe including France & Germany. Thames 27/28s continuing to lead widening (+7/+10), tightening broad-based & led by high-beta RE names; Aroundtown (28s -5) & CPI (31s -6).
  • iTraxx is -0.4/-2.3, mostly catching up to the risk-recovery/bid late into US Friday's close. $IG finished 1b tighter & mute over the week - which is in-line with us. €IG equities are +0.3% (SXXP +0.2%) this morning with no blowouts to flag. S&P futures +0.1% & similar low vol in pre-market,
  • Primary is kept open with United Utilities £27Y (FV above) with some mandates including brewer Molson Coors & Utility EPH in Euro deals and Clarion with £33Y. Supply expectations are only ~€5b lower locally & unch in $ - both point to a still active week ahead.
  • ETF flows were mute to end the week & though supply is yet to have any significant impact in secondary we are seeing reports emerging from US of high dealer inventories.
  • Bunds flat with only Fedspeak ahead today. Quieter week for macro more broadly with May PMIs across US & Europe, weekly initial claims (reference week for payrolls) & Fedspeak the main events.