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EUR Market Wrap

CREDIT PRE-MARKET


• 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.


DateGMT/LocalImpactFlagCountryEvent
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

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