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EUR Market Wrap

CREDIT UPDATE


  • Bunds are flat – DM team flagged that regional news flow has been light, with the continued pullback in oil futures providing modest support to core FI. Eurozone final July CPI confirmed flash estimates, while German PPI was also in line with consensus earlier today. Canadian CPI may provide some spillover potential this afternoon.
  • Main/XO are +1bp/+3.5bp at 54bp/294bp while €IG/€HY look flat. Primary is open with deals from BMW (3/6/10yr SUN), BNP (10NC5 T2), Erste (8NC7 SP), Mizuho (6NC5/10yr SUN), Merck (30NC5.5 Hybrid), Handelsbanken (7yr SNP) and a EUR 500mn 10y mandate from UPM-Kymmene. Curve movers today include Heimstaden (up to 12bp tighter), Tapestry (up to 5bp tighter), Alimentation Couche-Tard (up to 6bp tighter).
  • SXXP is flat while SPX futures are flat too. €IG movers include H Lundbeck +4%, Norstar +4%, BT -7%, Aker BP -4%.

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