EUR Wrap; Key Measures Relatively Stable, Some Outliers.

EU market wrap; US closed for President’s Day, so today is quieter than normal

• EGBs: financing needs seem to help cap any rallies in the broader EGB space, although ranges remain contained, with 10-Year benchmark yields operating a little off last week’s extremes and the lack of U.S. participation limiting wider activity. The German curve twist steepens with yields running 1bp lower to 2bp higher. Peripherals continue to trade within 1bp of Friday’s closing levels vs. 10-Year Bunds, with spreads now mixed on the day after moving away from session/cycle tights (depending on metric observed).
• Credit: Main/XO are 0.2/1.9bp wider this morning in contrast to cash EUR IG/HY which are 1.5/6.4bp tighter with a broad spread of contributors led by energy and tobacco credits.
• Equities: SXXP is within 4bp (!) of Friday’s close with healthcare leading and semis lagging. Temenos is bouncing back (+9%) from Thursday’s drop (~30% lower) on a short selling report and Forvia is suffering (-7%) following results with poor EV transition metrics.
• Primary: relatively quiet due to the US holiday but CregAg (EUR1.25bn) and Nykredit (EUR800m 2-tranche) are leading the way with Infineon (EUR500m) and LR Health (EUR130m) also in the market.
• Other news: Saudi Aramco to issue debt this year, Thames Water planning another rescue, weak news in Poland on CHF mortgages and we await the onslaught of results and primary slated for tomorrow.