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EUR Market Wrap

CREDIT UPDATE


  • Bunds are +1-4bps – our DM earlier flagged the lack of weekend escalation in the Israel-Iran situation and U.S. fiscal support for Ukraine dominating most macro conversations, keeps bearish technical backdrops intact.
  • Main/XO are -1bp/-7bp bringing the WoW to flat/+2bp while FICM shows €IG/€HY as flat/-3bp – swap spreads imply moves ~1bp tighter than that vs. govies. Sub Fins and Healthcare look to be outperforming with Tech, Industrials and Energy underperforming.
  • Movers today include Thames Water (up to 19bps wider on updated business plan), Elis (-5bp), Manpower (-5bp), International Distribution (up to 9bps tighter), Prosus (3-6bps tighter).
  • SXXP is +0.5% with Autos and Utilities while Retail outperforms at +1.7%. Notable €IG performers include Mobico -10%, Sandoz +6%, Naspers +5%, CPI Property +5%

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