Free Trial

EUR Market Wrap

CREDIT PRE-MARKET

{EU} Market Wrap

  • 2y/10y bunds ended Friday -5bp/-8bp, bringing WoW moves to +4bp/-4bp. OIS markets are now back to pricing in four ECB cuts this year though headlines from Lagarde on Friday didn’t add much new to the policy debate, with Q1 wage data reiterated as an important input to the bank’s rate cut decision.
  • Main/XO tightened 0.3bp/3.2bps, bringing WoW moves to -2bp/-7.5bp while iTraxx SR/Sub Fins tightened 3bp/9bp on the week. €IG/€HY ended Friday -1bp/flat with WoW tightening of 7bp/10bp. All €IG sectors tightened on the week though Energy underperformed at -2bp while Cons Cyc and Transport outperformed at -8bp/-7bp.
  • SXXP ended +0.4% DoD and +3.8% YTD. Autos was the best performing sector on Friday at +1.1% (+11% YTD, 3rd best performing sector after Tech and T&L) despite a 5% sell-off in Volvo on the announced intention to dilute its Polestar stake. Tech was the worst performing sector at -0.3% though it remains the best YTD performer at +12%. SXXP futures are +0.2% DoD.
  • After falling by over 2% on Friday oil prices are down again during APAC trading with front-end brent contracts streaming at $81.40 as softer risk appetite has weighed on commodities generally and markets remain concerned about weaker demand from the US and China.
  • Up today we have:

GMT/Local

Impact

Country

Event

0800/0900

**

ES

PPI

0900/0900

UK

BOE's Breeden at BOE agenda for Research Conference

1100/1100

**

UK

CBI Distributive Trades

1100/1100

UK

BOE's Pill at BOE Agenda for Research conference

1500/1000

***

US

New Home Sales

1530/1030

**

US

Dallas Fed manufacturing survey

1600/1700

EU

ECB's Lagarde participates in debate on ECB 2022 Report

1630/1130

*

US

US Treasury Auction Result for 2 Year Note

1630/1130

*

US

US Treasury Auction Result for 26 Week Bill

1800/1300

*

US

US Treasury Auction Result for 13 Week Bill

1800/1300

*

US

US Treasury Auction Result for 5 Year Note

2330/0830

***

JP

CPI

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.