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EUR Market Wrap (7am)

CREDIT PRE-MARKET


  • The bund curve cheapened yesterday, initially driven by hawkish Fed cut repricing and a strong German IP reading before moving off intraday lows alongside USTs.
  • Main/XO ended -0.4bp/+0.6bp while €IG/€HY cash ended -1bp/-4bp with performance pretty even across the €IG curve while Energy and Tech bonds outperformed, tightening by over 1.5bp. Energy is the best non-financial performing sector YTD at -30bp.
  • SXXP ended -0.4% with Energy the outperformer at +1% and Utilities the underperformer at -2%, Notable credit movers included Ryanair (+4%), Easyjet (+3%), Siemens (+3%), Banco Bilbao (-3%), Sage (-3%) and Elisa (-3%).
  • Asian equities are mixed but higher with the Nikkei +1% with a slightly weaker providing support. Stoxx 50 futures are +0.5%. Up today we have:

GMT/Local

Impact

Country

Event

0645/0845

*

FR

Foreign Trade

0900/1000

**

UK

Gilt Outright Auction Result

1000/0600

**

US

NFIB Small Business Optimism Index

1255/0855

**

US

Redbook Retail Sales Index

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

1700/1300

***

US

US Note 03 Year Treasury Auction Result

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