** Deutsche Bank SAE maintains a pulse in the Euro primary market with well received EUR1bn Dec 2021 Cedulas Hipotecarias, the first covered benchmark in Euros since 23rd Nov. See IGM's COVERED SNAPSHOT for more details.
** BNP Paribas was marketing a new USD PNC5.25 (14-Mar-2022) issue, the first USD AT1 debt from a European issuer since 16-Nov which had commanded over USD6bn of demand at the last update. For more details see IGM's FIG SNAPSHOT
** The primary corporate market drew a blank although secondary spreads were tighter for choice, with the exception of Tuesday's deal from Aroundtown Properties which struggled having received a rather underwhelming response. See the CORP SNAPSHOT for IGM's deal tracker
** With the ECB meeting taking centre stage on Thursday, Euro supply is likely to remain relatively contained
Broader market developments on Wednesday: QE style price action pre-ECB
** EU equities added to gains seen Monday and Tuesday, supported by financials with Italian banks buoyed by reports, later denied by the Italian Treasury, suggesting Rome could inject EUR15bn into its domestic banking system via the ESM
** Govvies also bid as markets fall further into the shadow of Thur's ECB meeting and thoughts turn to the possibility of extended QE beyond Mar 2017. PGBs outperformed the rest of the region, pulling the 10yr yield down to a 3-month low of 3.48%
** German and UK Industrial Production post huge misses in Oct with the MoM read for the latter at -1.3% (exp 0.2%), weakest print since Sep 2012. US Oct JOLTS beat at 5534 (exp 5500, prev 5631r from 5486)
** Oil bears retained the upper hand with Brent down 0.63% at USD53.59 as at 15:17 GMT, which follows a 1.84% decline Tuesday.
** iTraxx indices carve out fresh tights before widening with Main +0.4 at 74.8 and Crossover +1.1 at 317.2 as at 14.59. That follows session tights of 73.0 and 311.5, which marked the tightest levels since 10th Nov and 9th Sep respectively. Financials outperform with iTraxx Senior Financials index -0.80 at 100.99 and Sub index -10.46 at 235.84.
What to watch Thursday:
** Data: No game changing releases due with focus squarely on the ECB policy verdict/presser, although for interest Bank of France releases its latest Business Sentiment survey
**Events: Watching ECB. No change is expected in policy rates, putting focus on President Draghi's presser amid speculation QE could be extended beyond the current end date of Mar 2017. Click here for IGM's ECB Preview
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