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EUR Mini Wrap

CREDIT UPDATE


  • Main/XO initially streamed ~0.5bp/2bp tighter at the open but has rewidened to +0.5bp/+1.8bp with iTraxx SR/Sub Fins broadly in line.
  • Early FICM prints show €IG/€HY -0.4bp/-1.6bp though swap spread vol implies larger moves versus govies (3y swap spreads +1bp, other tenors more muted).
  • Bunds largely flat at the short end with 2-3bps of cheapening beyond 10yr. OIS cut pricing for 2024 remains ~130bps ahead of Thursday’s ECB meeting.
  • SXXP appears to have opened flat with healthcare underperforming - Sanofi has opened 0.6% lower.

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