** Primary draws a blank post Fed in Europe but cash markets remain in good shape in the low-issuance environment as reflected by the tightening in secondary spreads. See the IGM CORP SNAPSHOT and IGM FIG SNAPSHOT for our performance trackers of recent deals
** Thursday's blank leaves the weekly public volume total of EUR issuance at just EUR3.325bn, which is slightly down on the EUR3.585bn recorded last week
Broader market developments on Thursday:
** EU equities get mild lift, inspired by govvie sell-off and EUR/USD weakness in wake of Wed's hawkish Fed statement, despite a negative handover from US and Asia overnight and softer oil
** Also supporting price action was mostly forecast beating data/surveys. Eurozone PMIs were mixed, UK retail sales beat expectations, while US activity data (Empire Mfg, Philly Fed Business outlook) both significantly overshot expectations. US CPI as expected though at 0.2% MoM from 0.4% previously
** A trio of central banks kept policy on hold (BoE, SNB and Norges Bank)
** Gilts spearheaded the EGB decline, GGBs also got heavily hammered as sovereign debt woes reignited. 10yr Bund yield comfortably below the 0.4% resistance level. For more details see IGM Fixed Income Close
** iTraxx indices decoupled from stocks, Main touches one-week wide (74.645), Crossover on course to end 4-day tightening spell
** EUR/USD hits weakest level since Jan 2003 (1.0395)
** Oil eventually slides amid a stronger USD and news that Libya is preparing to reopen two of its biggest oil fields and ship the 1st cargo in 2 years (BN), while safe-haven gold plummets to its lowest level since 3rd Feb
Market Snapshot (15.00)
** Gilt 10yr yield rises up to 15bps to 1.531%, but now +11.5bp at 1.495%
** SXXP +0.49%, SX7P +1.92%
** iTraxx Main +1.1 at 74.1 / Crossover +4.4 at 300.1
** Brent crude -0.82% at USD53.46, adding to Weds 3.27% decline; Gold -2.85%
What to watch Friday
** Data: Eurozone reports trade data for Oct, while final inflation numbers should affirm the flash print at 0.6% YoY. Second tier US data comes in the shape housing starts and permits.
** Events: ECB's Weidmann to speak at the opening of the Bundesbank Money Museum, while Fed's Lacker is also penciled in to speak. After European hours, German sovereign debt is due to be rated by S&P and EU debt by DBRS.
** Supply: There are no significant term auctions scheduled in Europe or US on Friday 16th Dec
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