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EUR Market Wrap

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  • 2y/10y bunds ended -5/-8bp on Friday with regional headline flow light though with support still feeding through from the week's dovish central bank outcomes. WoW moves stand at -12bp for both 2y/10y.
  • €IG/€HY closed +1/+10bp with HY underperforming on a variety of idiosyncratic credit narratives. WoW moves stand at +2bp/+22bp with 1-3yr €IG spreads underperforming +10yr spreads by ~1bp with all sectors slightly wider. Fins, Energy and Cyclicals all widened by over 2bp while Tech outperformed at broadly flat WoW.
  • SXXP ended flat with WoW gains of 1% (vs. +2.3% for SPX) with Consumer Products/Services (-3.4%) and Real Estate (+5.2%) the biggest movers on the week.
  • Asian equities are trading mixed but mostly lower with the Nikkei -1.2% after Japan's currency chief warned of significant moves in the FX markets driven by market speculation rather than fundamentals, in relation to the weakening yen from the past week. Up today we have:


GMT/Local

Impact

Country

Event

0800/0900

**

ES

PPI

1000/1100

EU

ECB's Lagarde at EIB Climate Council

1100/1100

**

UK

CBI Distributive Trades

1225/0825

US

Atlanta Fed's Raphael Bostic

1400/1000

***

US

New Home Sales

1415/1415

UK

BOE Mann At Royal Economic Society Annual Conference

1430/1030

**

US

Dallas Fed manufacturing survey

1430/1030

US

Fed Governor Lisa Cook

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

1700/1300

*

US

US Treasury Auction Result for 2 Year Note

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