EUR Market Wrap

{EU} Market Wrap

• 2y/10y bunds ended +7bp/+3bp with yields spiking after the 0.85% M/M US supercore CPI print as markets further pared rate cut expectations. There was a slight paring of the move over the PM but the market held onto most of the widening.
• Main/XO widened 1bp/7b, outperforming CDX IG/HY by 1bp/4bp and bringing YTD underperformance to 1bp/10bp. €IG/€HY cash tightened 0.5bp/2.7bp with BB bonds outperforming and Pharma/REITs underperforming at +0.7bp (Pharma the worst performer WoW at +1.5bp).
• SXXP ended at -0.4% with Tech moving off intraday lows but still ended -2.7%. ASML pared some of its earlier loss (having spent most of the day as the sub-index worst performer) to end -3%. Infineon ended took the place of worst Tech performer at -5% despite no relevant news aside from it’s S&P upgrade as flagged.
• Asian equities are lower on the CPI print, though Hong Kong equities have reversed early losses to trade higher. SXXP futures are over 1% lower DoD.
• Up today we have:

Time C Event

07:00:00 UK CPI/RPI/PPI

08:00:00 EC ECB's Vujcic

08:30:00 EC ECB's Guindos

09:30:00 UK House Price Index

10:00:00 EC GDP/Unemployment/IP

12:00:00 US MBA Mortgage Applications

14:00:00 EC ECB's Cipollone

14:30:00 US Fed's Goolsbee

15:00:00 UK BOE Governor Bailey at the Lords

16:30:00 EC ECB's Cipollone

17:00:00 EC ECB's Nagel

21:00:00 US Fed's Barr