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EUR Market Wrap

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  • 2y/10y bunds closed +2bp/-2bp after bunds stabilised close to intraday highs alongside USTs with notable macro drivers lacking and after French election saw the worst-case scenario for markets (an absolute majority for RN or NFP) avoided though uncertainty remains around the eventual composition of the Government.
  • Main/XO ended -2bp/-7bp at 52bp/289bp while €IG/€HY was -1bp/-2bp – short-dated €IG spreads underperformed at flat (vs. -1.1 for +10yr) while Energy and Tech lagged, ending marginally in the red.
  • SXXP and SPX both ended flat – notable €IG movers included Corning +12%, Dell +5%, Tapestry +4%, BPER Banca +4%, SCOR SE +4%, K+S -5%, Maersk -5%, Teleperformance -4%, Baxter International -4%, Grenke -4%.
  • SX5E futures are -0.2%. Up today we have:

GMT/Local

Impact

Country

Event

0900/1100

EU

ECB's Cipollone at digital euro events by CB of Cyprus

1000/0600

**

US

NFIB Small Business Optimism Index

1255/0855

**

US

Redbook Retail Sales Index

1315/0915

US

Fed Vice Chair Michael Barr

1400/1000

US

Fed Chair Jerome Powell

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

1530/1130

**

US

US Treasury Auction Result for 52 Week Bill

1700/1300

***

US

US Note 03 Year Treasury Auction Result

1730/1330

US

Fed Governor Michelle Bowman

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