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EUR Market Wrap

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  • Bunds are trading up to 2bps cheaper in a slight bear-flattening move – our DM team note limited fundamental drivers with ECB-speak earlier/overnight largely re-iterating previous rhetoric while German final HICP and Italian IP data were not market movers.
  • Main/XO are streaming 1bp/5bp tighter with the level of compression back to 264bps (12bps wider YTD but ~70bps tighter over the past 3m). FICM is showing €IG/€HY at +1bp/-2bp though swap spread moves imply better performance vs. govies. €IG reading looks broad-based though with some slight outperformance in Sub Fins.
  • SXXP is +0.1% with Healthcare again the biggest mover at +1%, led higher by Coloplast as flagged, and Tech +0.7% in the wake of strong earnings from Ayden, GN Store, Worldline etc. Basic Resources weighing on performance at -0.7% in a broad-based decline.

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