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Tuesday's primary market highlights

** Primary issuance stepped up a gear on Tuesday where EUR8.65bn of paper printed in the single currency with all asset classes represented to differing degrees, up sharply from the EUR625m which printed the day before. For a breakdown of Tuesday's Euro deals, see IGM DAILY EUR NICS & BOOKS

** The corporate sector saw three issuers bring a total EUR1.5bn on the back of combined books over EUR4.3bn, one being Louis Dreyfus which pulled the trigger on a EUR400m 5yr line after deciding to shelve plans for a visit to the market back in November due to adverse market conditions. See IGM's CORP SNAPSHOT for more background and analysis

** The Euro FIG market saw its first supply since Thursday as Bank of America priced a EUR 4bn 3-part senior deal (5nc4 fixed / floating and 8nc7 lines). Demand topped EUR6.25bn. See IGM's FIG SNAPSHOT

** Credit Mutuel CIC Home Loan SFH (CM-CIC) and Norddeutsche Landesbank Girozentrale (NordLB) provided the first EUR covered paper since last Wednesday with the former issuing a new EUR750m 8yr OFH whilst NordLB reopened its Jan 2027 OP for EUR300m. For more on these deals see IGM's COVERED SNAPSHOT

** Away from the single currency, The Society of Lloyd's followed up an investor roadshow with a GBP300m 30NC10 Tier 2 transaction which printed at UKT +330 having been ramped in 30bps from IPTs on the back of blowout books of over GBP2.4bn

Wednesday's primary prospects

** Asian Development Bank (Aaa/AAA/AAA) is taking IoIs at m/s +3 area IPTs for a EUR520m no grow 20yr line via Citi, Deutsche Bank and JP Morgan

** German State of Berlin (Aa1/AAA) is set to refresh its LSA curve with a 10yr EUR benchmark, having hired Deka, Deutsche Bank, HSBC, LBBW and Natixis on Tuesday

** Credit Mutuel Arkea (Aa3/A) is readying a EUR500m (no-grow) 12yr T2 bullet, which is expected to be rated BBB by S&P. That follows a 10yr T2 bullet sold in May 2016 (CMARK 3.25% 6/2026) that was bid at m/s +213 on Tuesday morning

** In the dollar market, Province of Ontario (Aa2/A+/AA-) is taking IoIs for a USD 5yr Global issue at m/s +44 area IPTs

** In sterling, Land Securities Capital Markets PLC is eyeing a single or dual tranche (7-12yrs expected) senior deal after a series of investor meetings this week

Tuesday's broader market developments

** EU risk assets pushed marginally ahead before falling in PM trade as markets fell further into the shadow of Weds and Thurs Fed and BoE policy verdicts respectively. US data mostly softer � Chicago PMI and Conf. Board Consumer Confidence both miss, while S&P CoreLogic 20-City YoY beat

** Govvies - EGBs unwound an early sell-off ignited by rising inflation in the Eurozone, EZ pan CPI touches highest level since Feb 2013, but core rate steady as expected. French and Italian curves bull flatten, partially unwinding a recent hefty sell-off

** EUR/USD surges 0.92% at the time of writing - impacted by aforementioned US data miss and rising EZ inflation � dragging the dollar index (DXY) to its weakest level since 8th December

** Brent sees moderate recovery into the close on the back of a weaker USD. That follows a 1.8% drop in prices over the previous two days

** iTraxx indices start tighter then make a u-turn, Main touches widest level since 15th Dec

Market snapshot (15.12)

EUR/USD +0.92% at 1.0791

SXXP -0.13% / SX7P -0.26%

GER 2yr -1.7bps at -0.715% / 10yr -0.6bp at 0.439%

Brent +0.83% at USD55.69

iTraxx Main +1.3 at 73.7 / Crossover +1.8 at 301.7

What to watch Wednesday

** Data: It's Manufacturing PMI day in the Eurozone (peripherals report for the first time) before attention shifts to the US where ADP Employment, ISM Mfg and Construction Spending will be on the agenda. Chinese markets remain closed but China reports manufacturing and non-manufacturing PMI before Europe opens

** Events: The Fed concludes its two-day policy meeting after EU hours � no change expected and no presser either

** Supply: Germany plans to raise EUR4bn via a 2022 Bobl sale. Look out for any concession beforehand. Given the recent fragility seen in non-core debt it will also be worth watching for any setting up ahead of Thursday's auctions from Spain and France

** Earnings: 16 Stoxx600 and 27 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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