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EUR Mini Wrap

CREDIT UPDATE
  • EGBs have opened notably tighter with bunds 3-4bps tighter though off intraday richest levels against a morning with the RRR cut from the PBoC and initial rounds of preliminary PMIs as the most notable headlines . ECB-dated OIS contracts are pricing in 5bps more of 2024 cuts at 133bps ahead of tomorrow's policy decision.
  • Main/XO have opened -1.2bp/-7bp with Main now back below 60bps and both indices reversing yesterday’s widening. FICM indices showing €IG/€HY at +0.4bp/+2.3bp with swap spread vol implying slightly lesser moves vs. govies.
  • SXXP is +0.8% with Growth stocks +1.7% and larger caps slightly outperforming. Tech is the notable mover at +3.4% with SAP leading sector at +7% on improved 2024 guidance and a restructuring announcement (as flagged).

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