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EUR Mini Wrap

CREDIT UPDATE
  • Bunds are sitting ~4bps cheaper at most benchmark maturities with out DM team flagging Powell’s weekend comments and the hawkish BoJ sources piece in the FT as feeding into a hawkish tone with OIS-pricing of 2024 cuts falling back to 125bps.
  • Main/XO are sitting +0.7bp/+5.3bp with SR/Sub Fins performing well at +0.5bp/+1.2bp. FICM is showing €IG/€HY at -0.3bp/-2.9bp with swap spreads pretty flat DoD. Sub Fins are outperforming within the €IG print at -0.8bp.
  • SXXP is +0.2% in a broad-based start – Food & Bev outperforming at +0.7% while Autos are the worst performing sector at -0.4%. Unicredit +9%, Nordea -5%, Vodafone -1%.
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