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EUR Market Wrap

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  • 2y/10y bunds closed -3bp/-5bp after stronger-than-expected US retail sales data pulled Bund futures away from highs with the slightly softer-than-expected Canadian inflation data limiting the sell-off.
  • Main/XO ended +0.8bp/+3bp at 52bp/287bp while €IG/€HY was +0.8bp/+2bp with the IG short-end underperforming by 0.5bp (YTD 1-3yr spreads now -30bp vs. -16bp for +10yr spreads) while all sectors were wider with Utils underperforming at +1.6bp which saw the sector join Cap Goods as the only sector wider over the past three months at +1bp (vs. -4bp for the €IG index).
  • SXXP ended -0.3% while SPX was +0.6%. Notable €IG movers included WBD +8%, VF Corp +7%, Bank of America +5%, SCOR SE -25%, Severn Trent -5%.
  • SX5E future are -0.1% while SPX futures are -0.2%. Later the Fed’s Barkin and Waller both speak on the economy and the Beige Book is published. June UK CPI and final June euro area CPI print, as well as US June housing and IP data.

GMT/Local

Impact

Country

Event

0600/0700

***

UK

Consumer inflation report

0600/0700

***

UK

Producer Prices

0900/1100

***

EU

HICP (f)

0900/1000

**

UK

Gilt Outright Auction Result

1030/1130

UK

King's Speech

1100/0700

**

US

MBA Weekly Applications Index

1230/0830

*

CA

International Canadian Transaction in Securities

1230/0830

***

US

Housing Starts

1300/0900

US

Richmond Fed's Tom Barkin

1315/0915

***

US

Industrial Production

1335/0935

US

Fed Governor Christopher Waller

1430/1030

**

US

DOE Weekly Crude Oil Stocks

1700/1300

**

US

US Treasury Auction Result for 20 Year Bond

1800/1400

US

Fed Beige Book

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