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EUR Mini Wrap

CREDIT UPDATE
  • Short-end bunds are flat ahead of the ECB with ~1bp of widening further out the curve. Market now pricing 130bps of 2024 cuts (down from a post-PMI high of 137bps yesterday) though just 3bp and 12bp at the March and April meetings respectively.
  • Main/XO again widening way from year-end levels at +0.8bp/+4.2bp with Main moving into wider MoM territory. FICM showing €IG/€HY tighter by ~1bp as primary markets remain closed ahead of the ECB, though swap spread moves show more muted moves vs. govies.
  • SXXP slightly lower at -0.2% with Autos -1% after Tesla guidance was described as vague and hedge fund Qube revealed large short positions in VW.

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