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EUR Market Wrap

CREDIT UPDATE


  • EGBs are trading flatter with the short end 1bp wider and the long end 2bps tighter after firmer-than-expected Spanish flash January inflation print prompts pay-side flows in ECB-dated OIS, with 143bps of rate cuts priced through 2024 (vs 146bps pre-data). Bund yieldsflat though Italian GDP beating consensus, while Germany was in-line.
  • Main/XO opened tighter and is now sitting -0.6bp/-2.5bp with SR Fins in line with main and Sub Fins outeprforming by 0.6bps. FICM showing €IG/€HY as flat with Communicaitons bonds uoutepfroming slightly within €IG (-0.3bp)
  • SXXP is +0.3% with performance pretty evenly distrubuted with the exception of Food & Bev, dragged lower by Alcohol as Dieageo sits -3.4%.

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