Free Trial

EUR Market Wrap


• Bunds bear-flattened with the curve 5-8bps cheaper while OIS pricing for 2024 cuts fell to just 104bps – our DM team noted muted headline flow though selling $IG issuance likely factored into the rates moves. The reaction to the FOMC minutes seems muted and appears to have cantered on policy maker concern of cutting rates too soon.

• Main/XO ended -0.7bp/-3.2bp, outperforming CDX IG/HY by 0.3bp/2.5bp and bringing the Main vs. CDX IG and XO vs. CDX HY spreads to just 2bp and 13bp respectively.

• SXXP ended -0.2% with Banks -1.1% with HSBC (-8.4%) weighing on the sub-index in the wake of earnings. Autos rallied 1.6% with most stocks in the green and Forvia outperforming at +9% (though still -14% from Friday’s close).

• It has been a quieter day for China and Hong Kong equities, but the post lunch time trend has been positive. SXXP futures are +0.4% DoD.

22/02/20240630/0630UKBOE's Greene, Kroll South Africa breakfast
22/02/20240745/0845**FRManufacturing Sentiment
22/02/20240815/0915**FRS&P Global Services PMI (p)
22/02/20240815/0915**FRS&P Global Manufacturing PMI (p)
22/02/20240830/0930**DES&P Global Services PMI (p)
22/02/20240830/0930**DES&P Global Manufacturing PMI (p)
22/02/20240900/1000**ITItaly Final HICP
22/02/20240900/1000**EUS&P Global Services PMI (p)
22/02/20240900/1000**EUS&P Global Manufacturing PMI (p)
22/02/20240900/1000**EUS&P Global Composite PMI (p)
22/02/20240930/0930***UKS&P Global Manufacturing PMI flash
22/02/20240930/0930***UKS&P Global Services PMI flash
22/02/20240930/0930***UKS&P Global Composite PMI flash
22/02/20241000/1100***EUHICP (f)
22/02/20241100/0600***TRTurkey Benchmark Rate
22/02/20241330/0830***USJobless Claims
22/02/20241330/0830**CARetail Trade
22/02/20241445/0945***USIHS Markit Manufacturing Index (flash)
22/02/20241445/0945***USS&P Global Services Index (flash)
22/02/20241500/1000***USNAR existing home sales
22/02/20241500/1000*USServices Revenues
22/02/20241500/1000USFed Vice Chair Philip Jefferson
22/02/20241530/1030**USNatural Gas Stocks
22/02/20241600/1100**USDOE Weekly Crude Oil Stocks
22/02/20241600/1100**USKansas City Fed Manufacturing Index
22/02/20241630/1130*USUS Bill 08 Week Treasury Auction Result
22/02/20241630/1130**USUS Bill 04 Week Treasury Auction Result
22/02/20241800/1300**USUS Treasury Auction Result for TIPS 30 Year Bond
22/02/20242015/1515USPhilly Fed's Pat Harker
22/02/20242200/1700USMinneapolis Fed's Neel Kashkari
22/02/20242200/1700USFed Governor Lisa Cook

Bond Type Issuer Exp Rating Ticker B'mark Amount (bn) Spread (bp) Δ IPT (bp) BBG NIC (bp) Cover (x)
Banks (Sr Unsec) ORIX CORP A- ORIX 3.78 05/29/29 MS 0.50 100 35 N/A 3.9
Capital Goods EPIROC AB BBB+ EPIBSS 3 5/8 02/28/31 MS 0.50 98 37 N/A 6.0
Covered (Banking) HAMBURGER SPARKASSE AAA HASPA 3 02/28/31 MS 0.50 34 4 N/A 1.6
Covered (Banking) NOVO BANCO SA AAA NOVBNC 3 1/4 03/01/27 MS 0.50 45 10 N/A 9.8
Covered (Finance Companies) CREDIT AGRICOLE HOME LOA AAA ACACB 3 12/01/30 MS 1.50 39 8 -1bp 1.8
Covered (Local Authority) HYPO TIROL BANK AG AAA LANTIR 3 1/4 02/28/29 MS 0.25 54 6 1bp 2.1
Services AUTOSTRADE PER L'ITALIA BBB- ATOSTR 4 1/4 06/28/32 MS 0.50 160 40 -6bp 7.8
Services AUTOSTRADE PER L'ITALIA BBB- ATOSTR 4 5/8 02/28/36 MS 0.50 187 38 -2bp 5.6
Services AVIS BUDGET FINANCE PLC B+ CAR 7 02/28/29 B 0.60 459 0 N/A N/A
Services LEASYS SPA A- LEASYS 3 7/8 03/01/28 MS 0.50 120 45 N/A 6.6
Grand Total 5.85 130 22 -2bp 5.0

To read the full story



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.