February 27, 2024 07:29 GMT
EUR Market Wrap
CREDIT PRE-MARKET
- Bunds ended 7-8bps cheaper – our DM team flagged issuance as the most likely driver including French and Slovakian syndication announcements, a front-loaded UST supply calendar as well as the ongoing corporate supply slate.
- Main/XO ended 1bp/4bp wider, ending flat/1bp wider than CDX IG/HY. €IG/€HY cash tightened 0.3/3.9bp with Energy and Financials outperforming at -1.5bp/-1.5bp and Consumer Staples underperforming at +0.5bp. Corporate supply as per the below.
- SXXP ended -0.4% with Basic Resources (-2%), Utilities (-1.3%) and Real Estate (-1%) while just Tech (+0.4%) and Fin Services (+0.3%) finished in the green. Notable movers included BIRG (-10.5%), Kinnevik (+5.4%) and Tele2 (+5.3%) as flagged over the day.
- Asian equities are trading mixed but broadly flat in the wake yesterday’s quiet calendar though thing pick up today where we have:
GMT/Local Impact Country Event 0700/0800 * DE GFK Consumer Climate 0745/0845 ** FR Consumer Sentiment 0900/1000 ** EU M3 1000/1000 * UK Index Linked Gilt Outright Auction Result 1330/0830 * CA Capital and repair expenditure survey 1330/0830 ** US Durable Goods New Orders 1340/1340 UK BOE's Ramsden at Association for Financial Markets 1355/0855 ** US Redbook Retail Sales Index 1400/0900 ** US S&P Case-Shiller Home Price Index 1400/0900 ** US FHFA Home Price Index 1400/0900 ** US FHFA Home Price Index 1400/0900 ** US FHFA Quarterly Price Index 1400/0900 ** US FHFA Quarterly Price Index 1405/0905 US Fed Vice Chair Michael Barr 1500/1000 *** US Conference Board Consumer Confidence 1500/1000 ** US Richmond Fed Survey 1530/1030 ** US Dallas Fed Services Survey 1630/1130 * US US Treasury Auction Result for Cash Management Bill 1800/1300 ** US US Treasury Auction Result for 7 Year Note
Bond Type | Issuer | Exp Rating | Ticker | B'mark | Amount (bn) | Spread (bp) | Δ IPT (bp) | BBG NIC (bp) | Cover (x) |
Banks (AT1) | ABN AMRO BANK NV | BBB- | ABNANV 6 7/8 PERP | MS | 0.75 | 424 | 51 | N/A | 5.3 |
Banks (Sr Unsec) | STANDARD CHARTERED PLC | A- | STANLN 4.196 03/04/32 | MS | 1.00 | 145 | 35 | 13bp | 3.3 |
Capital Goods | HONEYWELL INTERNATIONAL | A | HON 3 3/8 03/01/30 | MS | 0.75 | 70 | 28 | 6bp | 2.5 |
Capital Goods | HONEYWELL INTERNATIONAL | A | HON 3 3/4 03/01/36 | MS | 0.75 | 105 | 28 | 17bp | 2.5 |
Covered (Banks) | TSB BANK PLC | AAA | TSBLN 3.319 03/05/29 | MS | 0.50 | 52 | 8 | N/A | 8.5 |
Services | PLUXEE NV | BBB+ | PLXFP 3 1/2 09/04/28 | MS | 0.55 | 75 | 40 | N/A | 6.8 |
Services | PLUXEE NV | BBB+ | PLXFP 3 3/4 09/04/32 | MS | 0.55 | 105 | 40 | N/A | 7.0 |
Grand Total | 4.85 | 139 | 33 | 12bp | 5.1 |
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