Free Trial

EUR Market Wrap

CREDIT PRE-MARKET


  • 2y/10y bunds closed +8bp/+6bp after the hawkish US CPI print caused pricing of 2024 ECB cuts to fall close to 8bps to under 80bps for the year with ~20bp priced in for June (2bps less than day before).
  • Noting overnight reports of an “imminent” Iranian attack on Israel. March FOMC Minutes reflected concerns that inflation’s progress toward its 2 per cent target might have stalled, and restrictive monetary policy may need to be maintained for longer than anticipated.
  • Main/XO closed +1bp/+7bp having opened tighter before widening on the US print. €IG/€HY ended flat/-6.5bp bringing WoW moves to -3bp/-9bp. Energy the only sector in the green yesterday at -1bp – Utils still the WoW underperformer at -1bp.
  • SXXP closed broadly flat, selling off on US CPI before moving higher over the US session with Banks +0.9%, Real Estate -1.6% and Utils -1.2%. Notable movers included chocolate-maker Barry Callebout +11% on volumes and cocoa resilience, Evotec -7% and BAWAG -6%.
  • Asian stocks mixed but mostly slightly lower while Stoxx 50 futures are flat. Up today we have:


GMT/Local

Impact

Country

Event

0600/0800

**

NO

Norway GDP

0800/1000

*

IT

Industrial Production

1215/1415

***

EU

ECB Deposit Rate

1215/1415

***

EU

ECB Main Refi Rate

1215/1415

***

EU

ECB Marginal Lending Rate

1230/0830

***

US

Jobless Claims

1230/0830

**

US

WASDE Weekly Import/Export

1230/0830

***

US

PPI

1245/1445

EU

ECB Monetary Policy Press Conference

1245/0845

US

New York Fed's John Williams

1400/1000

US

Richmond Fed's Tom Barkin

1430/1030

**

US

Natural Gas Stocks

1530/1130

**

US

US Bill 04 Week Treasury Auction Result

1530/1130

*

US

US Bill 08 Week Treasury Auction Result

1600/1200

***

US

USDA Crop Estimates - WASDE

1600/1200

US

Boston Fed's Susan Collins

1630/1730

UK

BOE's Greene at Delphi Economic Forum on Greece

1700/1300

***

US

US Treasury Auction Result for 30 Year Bond

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.