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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds are flat/-3bp – our DM team flagged that the focus today is on US data and speakers after softer than expected Italian IP data prompted a brief uptick in BTP futures on release, but gains have since been pared. ECB accounts at 12:30 not likely a market mover.
  • Main/XO are -0.1bp/-4.5bp having opened tighter and remaining near intraday lows. FICM shows €IG/€HY at +0.5bp; we see the market broadly flat against govies with pretty even performance across sectors. Primary closed. Low vol day for corps; main move to flag is Lufthansa (up to 6bps wider on mandate announcement).
  • SXXP is +1% with all sectors in the green but aside from Media/Chemicals/Autos. €IG movers include CPI Property =8%, Tauron Polska +6%, Nissan -4%.

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