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EUR Market Wrap

CREDIT UPDATE


  • Bund curve is 1-4bps richer in a bull-flattening move though EGBs remain below Friday’s highs with supply the main theme in the market as focus remains on US CPI and the ECB.
  • Main/XO are flat/+2bp, bringing WoW moves to flat/+5bp. FICM shows €IG/€HY as broadly flat with Energy the only €IG sector in the red (and marginally so) while Healthcare and Tech bonds outperform.
  • €IG movers today include Kemble (shortest-dated EUR 27s taking burnt of the move wider), Getlink (shortest-dated EUR 41s tighter as company reports 7% YoY traffic increase) and PVH (EUR 27s +9bp as company comes to market).
  • SXXP is +0.3% with Basic Resources the notable mover at +1.6% with all Metals & Mining stocks in the green. Notable €IG issuer moves include CPI Property +8%, Alstom +7%, Leonardo -6%, Forvia +4% and SCR Sibelco -4%.

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