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  • 2y/10y bunds ended +4bp/+2.5bp with yields finishing just off intraday cheapest levels as the details of the US CPI report were digested while we also saw an unwind of ECB cut pricing with 93bps of cuts priced through '24 vs over 100bps at the start of the week.
  • Main/XO ended -1bp/-2bp bringing WoW moves to -3bp/-9bp while €IG/€HY cash closed -3bp/-7bp. Within €IG, short-dated spreads outperformed (1-3yr spreads -3.1bp, +10yr spreads -1.3bp) while Energy and Sr Banks outperformed at -2.5bps and -5bp respectively.
  • SXXP ended +1% with Autos and Banks underperforming with gains of over 2% and Utilities and Real Estate underperforming with losses of 1.3%, Notable movers included Porsche (+11% on strong earnings and a doubling of the dividend), BKW (+10% on strong guidance) and International Distributions Services (-6%, now -21% since Jan high).
  • Asian equities are mixed with the CSI 300 -0.6% and the Nikkei -0.3% after a round of wage-hike deals including from the likes of Toyota. Stoxx 50 futures are flat. Up today we have:

GMT/Local

Impact

Country

Event

0700/0700

**

UK

UK Monthly GDP

0700/0700

**

UK

Trade Balance

0700/0700

**

UK

Index of Services

0700/0700

***

UK

Index of Production

0700/0700

**

UK

Output in the Construction Industry

1000/1100

**

EU

Industrial Production

1100/0700

**

US

MBA Weekly Applications Index

1145/1245

EU

ECB's Cipollone at conference in Milan

-

***

CN

Money Supply

-

***

CN

New Loans

-

***

CN

Social Financing

1230/0830

*

CA

Household debt-to-income

1400/1000

*

US

Services Revenues

1430/1030

**

US

DOE Weekly Crude Oil Stocks

1700/1300

***

US

US Treasury Auction Result for 30 Year Bond




Ticker

Issuer

Sector

Curncy

Amt Issued

Original Tenor

Spread Tightening (at syndication)

Spread Against

Launch Spread

EIKBOL 2 7/8 03/19/29

EIKA BOLIGKREDITT AS

Financial

EUR

500000000

5.0

9

MS

28

BACRED 3 7/8 07/04/30

MEDIOBANCA DI CRED FIN

Financial

EUR

500000000

6.3

32.5

MS

130

HTHROW 6 5/8 03/01/31

HEATHROW FINANCE PLC

Industrial

GBP

400000000

6.9


B

282

AALLN 3 3/4 06/15/29

ANGLO AMERICAN CAPITAL

Basic Materials

EUR

500000000

5.3

27

MS

118

AALLN 4 1/8 03/15/32

ANGLO AMERICAN CAPITAL

Basic Materials

EUR

750000000

8.0

32.5

MS

155

SNCF 3 1/8 05/25/34

SOCIETE NATIONALE SNCF S

Industrial

EUR

1000000000

10.2

4

B

39

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