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Wednesday's primary market highlights

** Supply slowed on Wednesday where EUR12.8bn of paper printed in the single currency, compared to EUR20.35bn on Tuesday. Combined books for Wednesday's deals stood at over EUR25.65bn and a breakdown of the day's supply can be found on our IGM DAILY EUR NICS & BOOKS Report

** SSAs again dominated supply with the asset class accounting for EUR9.8bn (76.56%) of total issuance on the day, spearheaded by a EUR4bn Nov 2022 line from CADES and a EUR3.5bn Nov 2046 issue from ESM. See earlier IGM SSA PREVIEW for more on the latest flurry of SSA deals

** There was also another trio of SSAs in the dollar market with EBRD and BNG both refreshing the 5yr part of their respective curves whilst L-Bank went shorter on the curve with a Feb 2019 deal. See here for more

** The Euro covered bond market re-opened courtesy of Credit Agricole Home Loan SFH which issued a multi-tranche transaction including a new EUR500m Feb 2037 line which was added via reverse enquiry. See IGM's COVERED SNAPSHOT for more analysis

** NTPC Limited had the corporate space to itself, with the issuer offering investors a rare opportunity to lock-in exposure to an Indian corporate in Euros. NTPC tapped the 10yr part of the curve for EUR500m and attracted demand of EUR2.2bn in the process. For relative value analysis see the IGM CORP SNAPSHOT

** Sterling was the focus for the FIG market where the only deal came courtesy of Westpac Banking Corporation which issued a GBP250m May 2025 bond. See IGM's FIG SNAPSHOT for more background

Thursday's potential primary supply

** After conducting investor presentations last week, SNCF Mobilites (Aa3/AA-/AA) has begun taking IoIs for a EUR Feb 2029 issue at FRTR +35 area IPTs via HSBC, Natixis and SocGen. The deal is expected to price on Thursday

** Dexia Credit Local (Aa3/AA/AA-) was taking IoIs for a EUR 7yr benchmark due 03-Feb-2024 at m/s +25 area IPTs for pricing on Thursday via Credit Agricole CIB, Deutsche Bank, JP Morgan and Natixis.

** Atlantia S.p.A, the Baa2/BBB/A- rated holding company of Italian autostrade network, Autostrade per l'Italia and Aeroporti di Roma could pull the trigger on a EUR 8yr benchmark, having held an investor call on Wednesday via Credit Agricole CIB, Goldman Sachs International, JP Morgan and Mediobanca

Broader market developments on Wednesday

** European equities advanced for the second consecutive day with Stoxx600 hitting a 2 week high, following a positive handover from US and Asia overnight. Banking indices outperform. Some positive earnings reports lend support to risk-on tone.

** DAX touches fresh mid-2015 high (11803.62) despite softer German IFO modules

** Govvies get hammered again amid risk-on in equities. 10yr EGB yields rise up to 8.5bps with PGBs leading the charge. German and French curves bear steepen. 10 and 30 year German yields carve out fresh 2017 highs

** Brent erases Tuesday's 0.38% gain and more, down 0.94% to sub-USD55.00 at the time of writing. Price action follows Tuesday's API data that showed crude stockpiles rose by 2.93m brls last week

** iTraxx Main and Crossover touch tightest levels since 5th Jan, Sub-financial index outperforms having hit its tightest level since September

Market Snapshot (14.35)

GBP/USD +0.32% at 1.2567

SXXP +1.27% / SX7P +2.59%

GER 2yr +2.1bps at -0.669% / 10yr +6.1bps at 0.465% / 30yr +7.6bps at 1.229%

Brent -0.94% at USD54.92 / Spot gold -1.56% at 1193.4

iTraxx Main -1.5 at 68.5 / Crossover -4.6 at 285.6

What to watch Thursday

** Data: Focus is on UK as it reports Q4 Advance GDP (est 0.5%, prev 0.6%). Also on the agenda is German GFK Consumer Confidence, Spanish Unemployment and Italian Retail Sales, while New Home Sales, activity surveys and wholesale inventories form the US highlights

** Events: Watching several ECB central bank speakers in the shape of ECB's Weidmann & Knot who both speak at a conference in Berlin, with Mersch and Villeroy are also due to speak on Thursday

** Supply: Also watch out for any pressure on BTPs and USTs in the run up to Italian (up to EUR3.5bn CTZ/BTPeis) and US bond auctions (USD28bn 7yr).

** Earnings: 16 Stoxx600 and 39 S&P500 companies report

Headline writers getting set for DJIA milestone

IGM COMMENT: Headline writers getting set for DJIA milestone

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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