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EUR Market Wrap

CREDIT PRE-MARKET
  • Bunds ground wider over much of the session, yields driven higher following the morning's higher-than-expected Spanish inflation data and stronger than expected flash GDP figures in Spain, Italy and the Eurozone. Yields ticked wider again after the higher-than-expected US JOLTS job openings
  • Main/XO ended flat/-1bp, outperforming US equivalents by 0.6/5.3bp. €IG/€HY cash outperformed against a day of lower supply with spreads tightening by 0.8bp/3.5bp. BB bonds again underperformed while energy and tobacco bonds were the biggest DoD movers within €IG, tightening by over 2bp.
  • SXXP ended +0.2% with larger caps and cyclicals outperforming. Gains in Banks (+1.3%, led by BBVA as flagged), Autos (+1.1%, driven by the GM beat) and Retail (+1.1%, broad-based) were offset by losses in TelCos (-1.1%, led lower by Tele2 who beat on sales/EBITDAal though CapEx guidance raised questions).
  • HK/China equities are lower again today, market sentiment is still poor following the ordered liquidation of China Evergrande, while China data isn't helping with the manufacturing PMI missing slightly, and a lack of details surrounding the market-stabilization program announced last week. SXXP futures are flat DoD.
  • Up today we have:

Time C Event

07:00 GE Import Price Index

07:00 GE Retail Sales

07:00 UK Nationwide House Px

07:45 FR CPI &PPI

08:00 SP Retail Sales

08:55 GE Unemployment Claims Rate

09:00 GE Regional CPI

09:00 IT Unemployment Rate

09:00 SP Current Account Balance

10:00 IT Hourly Wages

11:00 IT Industrial Sales

12:00 US MBA Mortgage Applications

13:00 GE CPI

13:15 US ADP Employment Change

13:30 US Employment Cost Index

14:45 US MNI Chicago PMI

19:00 US FOMC Rate Decision

19:30 US Fed Chair Holds Press Conference Following FOMC Meeting


Curncy

Bond Type

Issuer

Exp Rating

Rank

Ticker

B'mark

Amount (bn)

Spread (bp)

Δ IPT (bp)

BBG NIC (bp)

Cover (x)

EUR

Banks (Sr Pref)

DEKABANK DEUTSCHE GIRO

A

Sr Preferred

DEKA 3 1/4 02/08/29

MS

0.50

75

30

N/A

3.5

EUR

Real Estate (Sr Unsec)

CTP NV

BBB-

Sr Unsecured

CTPNV 4 3/4 02/05/30

MS

0.75

220

40

5.8

4.7

EUR

Covered (Banking)

ARGENTA SPAARBANK

NR

Secured

ARGSPA 3 1/8 02/06/34

MS

0.75

58

10

2

6.5

EUR

Covered (Local Authority)

LANDBK HESSEN-THUERINGEN

NR

Secured

HESLAN 2 7/8 02/06/34

MS

1.25

33

7

-3.5

1.7

EUR

Entertainment

CIRSA FINANCE INTER

B

Secured

LHMCFI 6 1/2 01/30/29

B

0.45

N/A

N/A

N/A

N/A

EUR

Food Service

COMPASS GROUP PLC

A

Sr Unsecured

CPGLN 3 1/4 02/06/31

MS

0.75

70

38

17.3

5.5

Grand Total

4.45

91

25

5.4

4.4

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