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EUR Market Wrap

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  • Bunds closed Friday 2-3bps wider after EGBs remained under pressure following a mixed University of Michigan report (higher inflation expectations & lower confidence metrics) from the US. WoW move of +3-4bps.
  • Main/XO ended Friday flat with WoW moves of -3bp/-16bp with XO back at 300bp. €IG/€HY were flat/-2bp to give WoW moves of -2bp/-10bp. 1-3yr €IG spreads outperformed longer end spreads by ~1.5bp on the week with Energy outperforming at -3.5bp (now the best MoM performer at -2bp.
  • SXXP closed +0.8% to give WoW of +3.5% vs.+3.1% for SPX. Notable €IG movers on the week included Siemens Energy +22%, Infineon +20%, Tauron Polska +19%, Ryanair -7%, Danske Bank -6%.
  • Asian equities are mixed with the Hang Seng +0.7% but the Nikkei -0.2%. On Saturday we had Chinese CPI which was slightly above expectations, while PPI missed estimates. Stoxx 50 futures are +0.7%. Up today:

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