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Friday's primary market highlights

** The only Euro supply on Friday came courtesy of European Investment Bank (EIB)

which re-opened its 0.5% Nov 2023 CAB for EUR400m at a spread of m/s -29 to bring the new outstanding issue size up to EUR1.9bn (details here)

** That leaves total EUR IG supply for the week at a healthy EUR38.7bn, spearheaded by the SSA sector which accounted for EUR21.95bn (55.6%) of the overall issuance total. For more see IGM's WEEKLY VOLUME Report

** Away from the single currency, Wells Fargo & Co refreshed it sterling senior curve on Friday via a GBP500m Dec 2023 issue, whilst La Mondiale printed a USD530m 30NC10 Tier 2 sub. For more on both trades please see IGM's FIG SNAPSHOT

** Corporates printed a combined EUR6.2bn of paper in the single currency this week courtesy of 11 separate transactions, bringing YTD issuance for the asset class up to EUR23.735bn. For some observations on the week's corp supply see IGM's CORP SNAPSHOT

** Data from EPFR Global for Euro-denominated IG bond funds showed investors withdrew money in the latest week, ending a four-week winning run. Outflows totalled an equivalent $544.724m which followed $623.52m of inflows the week previous. For more details see earlier EPFR FUND FLOWS report

IGM Credit Excel weekly overview

** The IGM European Weekly Credit Overview is your comprehensive round-up of primary European new issue activity in Excel format, which allows users to conveniently download, save and edit the data as required. As well as new issue terms and conditions the spreadsheet incorporates additional sought after new issue data sets including distribution stats, book sizes, NICs and secondary market performance.

Monday's primary prospects

** As the time of writing there were no definative issues lined up for Monday although with the Euro market having paused for breath on Thursday and Friday its realistic to expect the primary market to hit the ground running next week.

** Those deals which could materialise next week in Euros subject to market conditions include SNCF Mobilites and ESM, while in sterling United Kingdom is expected with a new conventional Gilt due July 2057.

Broader market developments on Friday

** EU risk assets advance in run up to US President-elect Trump's official inauguration with limited fresh impulses out in the interim

** UK Retail Sales MoM turned negative (in Dec) for the first time since September, at -2.0%, while German PPI YoY was as expected

** Bond bears continued to have the upper hand. EGB yields pushed up to 4.1bps higher in the 10yr space with OATs the weakest link. German and French curves bear steepened while PGBs outperformed. 10yr UST yield hits psychological 2.5% level, highest since end-Dec

** Brent rebounded back above the USD55.00 level, broadly flat over the week. Saudi Arabia Energy Minister Khalid Al-Falih said producers cut 1.5m barrels a day of output so far this month, while Russian production declined in Jan from Nov and Dec levels (BN)

** iTraxx indices tighten, Crossover respects Thursday's range

Market snapshot (15.03)

SXXP +0.02% / SX7P +0.35%

EUR/USD +0.29%

GER 2yr +2.7bps / 10yr +3.4bps

Brent +2.33% at USD55.42 / spot gold +0.38% at 1204.81

iTraxx Main -0.7 at 68.8 / Crossover -1.4 at 285.8

What to watch on Monday

** Data: Scant agenda with just Eurozone flash consumer confidence, seen less negative in Jan at -4.8 from -5.1

** Events: Focus on central bank speakers in the shape of ECB's Draghi (11.30) and Praet (13.15)

** Supply: There are no significant term auctions scheduled in Europe or US on Monday 23rd January

** Earnings: 1 Stoxx600 and 4 S&P500 companies report

** See IGM's Fixed Income Week Ahead for additional headline event risk to watch out for next week

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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