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Primary market highlights on Wednesday

** It was another busy session in the primary market on Wednesday with 11 IG deals pricing for a total EUR16.35bn on the back of demand topping EUR41.28bn. That was slightly down on the EUR16.55bn which was issued on Tuesday. For a breakdown of Wednesday's deals see IGM's DAILY EUR NICS & BOOKS

** The Republic of Italy took the accolade for biggest deal of the deal, with the sovereign printing a EUR6bn Sep 2033 deal at BTPS +18 on the back of books over EUR21.3bn. In total, SSA's printed EUR12.25bn which equates to 74.92% of total supply on the day, with the EIB's EUR5bn 10yr EARN helping to boost this total along with Italy. See earlier IGM SSA PREVIEW for more

** The corporate sector was the most active in terms of number of deals where 5 benchmark tranches priced courtesy of Vonovia (two-parter), SNAM, Bollore and Accor. Combined demand for the EUR2.6bn of paper issued stood at over EUR7.1bn. For relative value analysis and background on the trades see IGM's CORP SNAPSHOT

** Covered supply picked up thanks to Sparebank1 Boligkreditt and Aareal Bank which went head-to-head in the 5yr part of the curve, raising a combined EUR1.5bn fairly comfortably in the process. For more details see the IGM COVERED SNAPSHOT

Thursday's potential primary issuance

** EUR supply may be less robust on Thursday given headline event risk in the form of the ECB meeting. This is reinforced by the fact that there were no confirmed EUR deals for Thursday at the time of writing

** Away from the single currency, a duo of SSAs are lining up USD 3yr deals however. The Council of Europe Development Bank is taking IoIs for a USD1bn no grow Jan 2020 deal at m/s +15 area IPTs (see PREVIEW), whilst NRW.Bank has begun marketing a USD500m 3yr at m/s +24 area IPTs


Broader market developments on Wednesday

** Stocks and synthetic credit markets continued to lack a clear direction but did improve in afternoon trade

** Data-wise. Eurozone inflation was confirmed at a 3-yr high of 1.1% in Dec, UK employment data showed a surprise drop in the claimant count while annual wage growth rose to a 14-m high at 2.8%. US CPI matched forecasts while Industrial Production beat

** Cable eased back over a point from Tuesday's high as mkts chipped away at Tuesday's 2.9% rally which was seen as reflecting a short positional skew in an oversold unit

** Bunds were firmly entrenched in their 4-week range although bears had the upper hand Tuesday amid high supply. See IGM's FI CLOSE

** Citigroup and Goldman Sachs added to list of banks reporting stronger conditions in FICC in Q4


Market Snapshot (15.50 GMT)

GBP/USD -0.63% at 1.2337

SXXP -0.08%. techs best, media worst

GER 2yr +1.8bps at -0.735%/ 10yr +2.0bps at 0.338%

Brent -1.91% at USD54.41

iTraxx Main -0.4 at 69.6/ Crossover -2.3 at 290.0


Event risk to watch on Thursday

** Data: No top tier releases are out in Europe. US reports housing data and Philly Fed Business outlook

** Events: ECB in spotlight with policy verdict and subsequent presser, although interest rates are seen on hold. ECB's Coeure speaks at the World Economic Forum after EU hours

** Supply: Chunky supply for investors to digest with up to EUR4bn of 2019, 2022 and 2023 SPGBs and up to EUR10bn OATs and OAT linkers with maturities ranging from 2020 to 2047

** Earnings: 1 Stoxx600 and 12 S&P500 companies report. Latter includes Bank of New York Mellon



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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