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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds are +2.5bp/+1bp with little in the way of market moving headlines with ECB speak doing little to move markets (consensus continues to look for a June cut, which is fully priced) though gilts outperform after survey data pointed to continued softening of the domestic labour market ahead of tomorrow’s official monthly labour market report.
  • Main/XO are +0.5bp/+3bp while FICM shows €IG/€HY outperforming at -0.6bp/-2.9bp with most €IG sectors in the green and Fins outperforming at -1.1bp while Tech and Staples underperform (flat). Movers include Teleperformance (no news, slight reversal of recent widening) and Tennet/Lufthansa/Telecom Italia/Raiffeisen (as flagged) and Toyota/Wolters Kluwer (issuing today).
  • SXXP is -0.5% with Basic Resources and Tech underperforming at close to -2% - Basic Resources looks broad-based with most shares in the red while BE Semiconductor leads Tech lower at -7.5% on a potential delay in use of hybrid bonding technology in memory chip production.

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