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EUR Market Wrap

CREDIT PRE-MARKET
  • Bunds closed 5-6bp wider with peripheral spreads tighter (and OATs ~3bp tighter) after weekend developments on the French political front helped soothe market concerns to some degree (e.g. Le Pen saying if victorious in the upcoming election she would work with Macron).
  • Main/XO ended -1bp/-2bp at 63bp/330bp while €IG/€HY was +2bp/-1bp with short-dated IG spreads outperforming by ~1.5bp (1-3yr now -16bp YTD vs. -4bp for +10yr) with Energy outperforming but still one of the worst performers WoW at +16bp along with Fins.
  • SXXP closed flat with RE, Health and Utils all -1% while SPX closed +0.8%. Notable €IG movers included Dell +5% General Electric +5%, Flutter +5%, Vestas -4%, Acciona -4%. SX5E futures are +0.5%. Up today:

GMT/Local

Impact

Country

Event

0900/1100

***

DE

ZEW Current Conditions Index

0900/1100

***

DE

ZEW Current Expectations Index

0900/1100

***

EU

HICP (f)

0900/1000

**

UK

Gilt Outright Auction Result

0900/1000

**

UK

Gilt Outright Auction Result

1200/1400

EU

ECB's Cipollone chairing session on market supervision

1230/0830

***

US

Retail Sales

1255/0855

**

US

Redbook Retail Sales Index

1315/0915

***

US

Industrial Production

1330/1530

EU

ECB's De Guindos at EC and ECB joint conference

1400/1000

*

US

Business Inventories

1400/1000

US

MNI Webcast with Richmond Fed's Tom Barkin

1540/1140

US

Boston Fed's Susan Collins

1700/1300

US

Fed Governor Adriana Kugler

1700/1300

US

Dallas Fed's Lorie Logan

1700/1300

**

US

US Treasury Auction Result for 20 Year Bond

1720/1320

US

St. Louis Fed's Alberto Musalem

1800/1400

US

Chicago Fed's Austan Goolsbee

2000/1600

**

US

TICS

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