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EUR Market Wrap

CREDIT UPDATE


  • Bunds are 0-21bp cheaper across the curve – our DM team flagging limited spillover from Japanese union wage agreements and hawkish-leaning comments from the ECB’s Rehn against a cautious tone ahead of next weeks central bank decisions.
  • Main/XO are -0.3bp/+1.5bp while FICM shows €IG/€HY +0.8bp/+0.5bp with all €IG sectors in the red – Fins & Cons Disc underperforming slightly at +1bp, Tech outperforming at +0.2bp. Curves moving: Easyjet (EUR 25s -6bp), EP Infrastructure (curve 2-3bps tighter), Elis (up to 3bps tighter), IAG (up to 3bps tighter)
  • SXXP is +0.1% with Telecoms +1.3% (led higher by VOD and Swisscom as flagged and Telecom Italia on the reaffirmed summer timeframe for the KKR network sale) while Real Estate is underperforming at -0.9% (led lower by Vonovia at -7% post-earnings as covered.)

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