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Primary market highlights on Wednesday

** It was another active day for the European primary market on Wednesday where EUR13.35bn printed in the single currency courtesy of 13 separate tranches, which is slightly up from the EUR12.5bn which was issued Tuesday. This means we have already seen EUR74.3bn print in just the first 7 full trading days of 2017. For a breakdown of Wednesday's issuance please see IGM's DAILY EUR NICS & BOOKS

** The SSA sector was the most active where 7 separate deals priced courtesy of six separate borrowers, spearhead by a EUR3bn Apr 2027 from the Republic of Portugal which attracted demand topping EUR8.5bn. For more on this deal and Wednesday's other SSA deals see IGM's SSA Preview

** The CEEMEA market saw its first deal on Wednesday courtesy of the State of Israel which issued a dual-tranche EUR1.5bn 10yr/ EUR750m 20yr which amassed blowout combined demand of over EUR9.5bn. For an in depth look at the trade see here

** Spanish utility Gas Natural Fenosa Finance B.V and German chemical company Linde Finance B.V kept corporate supply ticking over with respective EUR1bn 10yr and EUR1bn 5yr deals, which attracted combined demand of EUR5.4bn. Linde was squeezed 13bps from IPTs resulting in a final 4bps NIC whilst Gas Natural compressed pricing 15bps resulting in a 15bps NIC. For more see IGM's CORP SNAPSHOT

** The FIG focus in the single currency was squarely on senior Wednesday as SMFG (EUR500m 5yr) and Intesa Sanpaolo S.p.A. (EUR1bn 7yr) amassed combined demand exceeding EUR2.5bn. That took the week / year up to EUR5.85bn and EUR12.7bn respectively. There were signs of selective widening among recent deals though. See IGM's FIG SNAPSHOT

** Two more issuers hit the covered bond market on Wednesday in the shape of BAWAG and Societe Generale SFH, bringing total EUR covered issuance for the year up to a hefty EUR18.5bn. BAWAG followed hot on the heels of Erste's EUR750m Jan 2027 deal on Tuesday to print its own EUR500m 10yr Austrian covered issue, while SocGen priced a EUR750m 7yr Obligations de Financement de l'Habitat (OFH). See IGM's COVERED SNAPSHOT for more

** The sterling primary market also remains buoyant where FMS-Wertmanagement's GBP375m 1.125% Dec 2019 and a GBP114.8m Aug 2045 issue from Affordable Housing topped up supply on Wednesday. FMS-WM takes SSA issuance volumes this year in the currency to GBP4.125bn out of a total of GBP7.99bn, also made up of GBP2.4bn of covered supply, GBP864.8m of corporate supply and a GBP600m senior unsecured FIG deal from Barclays Bank. See here for details of sterling issuance so far this year. The pipeline is also healthy with a raft of issuers planning to bring deals near-term spanning high-yield to SSA. See IGM's Sterling Pipeline here.

Thursday's potential primary supply

** Auckland Council is taking IoIs for a 10yr EUR benchmark at m/s +40 area IPTs and The Free and Hanseatic City of Hamburg could launch a EUR 8yr LSA benchmark having mandated Commerzbank, DekaBank, Deutsche Bank, DZ Bank, HSH Nordbank and UniCredit on Wednesday

** US based real estate investment trust WP Carey could go live with a SEC-registered EUR 7 or 8yr senior benchmark issue after holding an investor call on Wednesday via JP Morgan, BAML and Wells Fargo

** In dollars, Rentenbank is taking IPTs for a USD 7yr line at m/s +35 area IPTs whilst FMO is marketing a USD 3yr floater at 3mL +28 area IPTs

** In sterling, African Development Bank (AfDB) is eyeing a GBP Dec 2021 benchmark via Barclays, HSBC and Standard Chartered and BayernLB has hired Barclays and Credit Suisse for a possible 3yr floater or short 5yr fixed GBP covered

Broader market developments on Wednesday

** EU equities eked out slight gains ahead of US Pres-elect Trumps speech, while govvies also advanced across the 10-30s curve with peripherals leading the charge and PGBs outperforming

** Data-wise, Greece passed a key milestone as national CPI turned positive for the first time since Feb 2013 (+0.023% y/y), UK Industrial production beat expectations

** Brent rebounded following two-day loss, albeit off session high after after EIA crude inventory gain (+4.09m brls, exp +1.5k brls)

** iTraxx indices see-sawed with no overall direction

Market snapshot (15.48)

SXXP +0.51% / SX7P +0.03% / FTSE100 +0.58%

GER 2yr +1.5 / 10yr flat

Brent +1.16% at USD54.26, after two straight days of losses

iTraxx Main +0.1 at 69.5 / Crossover -0.9 at 289.7

What to watch Thursday

** Data: French CPI will help provide an early guide to pan-EZ inflation, while Eurozone Industrial Production is seen rebounding MoM in Nov after two straight months of decline. Germany reports annual GDP figures. No top tier data is due out in US. China reports Money Supply figures and New Yuan Loans CNY.

** Events: ECB publishes latest policy meeting minutes, while a plethora of US central bankers are lined up to speak in the shape of Harker (13.30), Evans (13.30), Lockhart (17.30), Bullard (18.15) and Kaplan (18.45)

** Supply: BTPs could come under pressure in the early part of the morning as Italy prepares to sell up to EUR7.25bn of 2019, 2023 and 2036 bonds. Also watch out for any last minute concession going into UK's GBP2.25bn 2025 gilt auction

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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