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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds are +5bp/3.5bp as markets digest the earlier inflation prints – our DM team noted that while the French/Spanish flash prints appeared a touch firmer than consensus, most focus has been on the German state-level data where MNI's tracking indicates headline inflation appears on track to match consensus though there are upside risks to the core print.
  • Main/XO are +0.2bp/+0.6bp having opened wider and tightened from there. FICM shows €IG/€HY cash +1.6bp/-0.8bp with Tech +2.5bp, weighed upon by Teleperformance selling off by close to 20bps. Also noting British American Tobacco underperforming, reversing recent outperformance.
  • SXXP is +0.1% with Media +1.5% on the UMG (+8%) results as flagged while Food & Bev underperforms at -1% on Unibrew’s (-5%) weak results yesterday. Other notable movers include Drax Group (+11% on earnings), Aixtron SE (-17%) on earnings) and Grifols (-10% as flagged.

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