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EUR Market Wrap

CREDIT UPDATE


  • 2y/10y bunds are +1bp/+3bp with our DM team flagging corporate issuance burdens coming alongside a hawkish-leaning ECB sources piece from Reuters and slight upward revisions to the August manufacturing PMIs. The remainder of today’s regional calendar is light (note also the US public holiday), with broader macro focus on this week’s US labour market data.
  • Main/XO are +0.3bp/+2bp at 52.9bp/290bp while €IG/€HY looks flat/-3bp. €IG primary is busy albeit quieter than last week with deals from Banco BPM (6NC5 SNP), ABN AMRO (AT1), Novo Banco (4.5NC3 SP), Kerry Group (8.5yr/12yr SUN), Veolia (10yr SUN). €IG curve movers include BALDER (up to 9bps tighter), HEIBOS (up to 13bp tighter), VGPBB (up to 9bp tighter), ENAPHO (up to 8bp tighter).
  • SXXP is -0.4% while SPX futures are -0.1%. €IG movers include Tauron Polska Energia +5%, ICADE +5%, Teleperformance -4%.

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