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EUR Market Wrap

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  • 2y/10y bunds ended Friday +2bp/flat after yields moved higher in the afternoon against slow headline flow as markets continued to digest Israel-Iran developments before moving off intraday cheapest levels into the close as the BoE’s Ramsden came across a touch dovish and ECB’s Vujcic displayed caution, not yet explicitly aligning with the June cut consensus.
  • Main/XO closed -1.5bp/-6.5bp bringing WoW moves to +5/+28bp (vs. +4bp/+22bp WoW for CDX IG/HY). €IG/€HY were flat/-1.6bp to end the week +3bp/+17bp with short-dated spreads outperforming by ~2bp on the week while Energy outperformed at +1bp and Cap Goods underperformed at +4bp.
  • SXXP ended flat with Food & Bev outperforming at +1.3% while underperformed at -1.8%. WoW the index was -1.2% while SPX was -3%. Notable €IG WoW movers were Int Distrbution Services +21%, Sartorious -17%, Adidas +15%, Prologis -13%, DS Smith -13%, Worldline -12%, Netflix -11%, EQT AB -11%, Sandoz Group +10% and Naturgy +10%.
  • Asian equities are broadly higher though CSI 300 is lagging/flat while the Hang Seng is +2% after the measures announced by the CSRC to boost Hong Kong competitiveness, while investors are breathing a sign of relief after seeing no Middle East escalation. Stoxx 50 futures are +0.3%. Up today we have:

GMT/Local

Impact

Country

Event

1000/1100

**

UK

CBI Industrial Trends

1230/0830

*

CA

Industrial Product and Raw Material Price Index

1400/1600

**

EU

Consumer Confidence Indicator (p)

1430/1030

CA

BOC market participants survey

1530/1730

EU

ECB's Lagarde Lecture at Yale

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

2300/0900

***

AU

Judo Bank Flash Australia PMI

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