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EUR Mini Wrap

CREDIT UPDATE


  • Bunds are ~1-2bp cheaper at most maturities with German factory orders touted as an early driver (though our DM team notes that more volatile/one-off components provided the impetus for the upside surprise) while dovish comments from de Cos and mixed readings in the consumer inflation expectations survey provided modest support, which quickly faded.
  • Main/XO are sitting +0.8bp/+6bp with levels again approaching the 60bp/330bp levels. FICM is showing €IG/€HY streaming slightly tighter at -0.3bp/-0.8bp (with swap spreads muted) amidst a relatively quiet day in primary (one covered deal, three bank deals and one real estate).
  • SXXP is flat DoD with Energy +1.7% in the wake of the BP earnings as flagged. Utilities are the worst performing sector at -1.4% in a broad-based decline (Orsted the only Utility in the green ahead of earnings tomorrow).

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