02 Feb 2018
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** Republic of Poland (A2/BBB+/A-) was alone in the single currency on Monday with its first ever sovereign Green bond (see CEEMEA DAILY here). The EUR750m 5yr deal attracted orders topping EUR1.4bn
** That follows a sharp slowdown in supply seen last week where weekly Euro volume stood at just EUR3.585bn via 7 transactions, down from EUR15.34bn the previous week. See IGM's WEEKLY VOLUME report for a stats and observations on last week's supply
** The latest ECB CSPP update showed ECB purchases settled as of 9th December totalled EUR49.906bn, which implied a monthly run rate of EUR8.03bn, falling slightly from the previous week (see full details here)
** The IGM/EPFR Weekly Cheat Sheet for the week ending Friday 9th December was published and highlighted that NICs in the Euro corporate sector almost doubled in the latest week to an average of 32.33 bps, representing the fourth straight week of rising NICs
Broader market developments on Monday:
** Reflation trades got a boost and core govvie curves bear steepened as oil rallied on non-OPEC agreement to cut production by 558k bpd
** Italian stocks outperformed following weekend appointment of Gentiloni as technocrat PM while broader stocks indices generally tracked sideways
Market Snapshot (as at 15.50GMT)
US 10yr yields +2.2bp at 2.49% after hitting session peak at 2.526% � highest level since Sep 2014
Brent Crude +3.48% at $56.22, having risen as much as 6.6% to 18-m peak at $57.89
SXXP -0.39%, SX7P -0.90%, FTSE MIB +0.45%
iTraxx Main -0.7 at 72.6 / Crossover -4.4 at 304.3
What to watch Tuesday:
** Data: The monthly data dump from China features IP and Retail Sales. UK CPI is seen rising at fastest pace since Oct 2014. German ZEW Expectation Index seen improving for a third straight month.
** Events: ECB's Hansson, Nowotny and Makuch could look to fine tune ECB's message to markets following last week's decision to cut to monthly purchases starting in April
** Supply: Austria conducts its final bond auction of 2016 (2025 and 2026 RAGBs). US to sell 30yr USTs with yields at highest level since Jul 2015
IGM FX and Rates, IGM Credit
By Marcus Dewsnap 20 Nov 2017
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