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Primary market highlights (and key weekly reports)

** The European primary market drew a blank on Friday which left the IG/Split rated EUR weekly issuance total at EUR14.095, which was sharply down from EUR43.45bn the previous week and marks the lowest weekly total of the year so far. For more details on this week's Euro supply see IGM's Weekly Volume Report

** FIG borrowers led the way on the week, with the asset class accounting for EUR5.8bn (41.1%) of the supply total, spearheaded by Bank of America's EUR4bn 3-part issue. For more, including our FIG performance tracker see IGM's FIG SNAPSHOT

** In contrast, the corporate market recorded its quietest week of the year so far where just EUR2.725bn was issued, although primary remains in decent shape as illustrated by various market barometers. See IGM CORP SNAPSHOT for some observations

** Data from EPFR Global for Euro-denominated IG bond funds shows investors put in an equivalent $760.28m in the week ending 1st Feb which follows $488.51m of inflows the previous week. This means that year-to-date inflows now total $2,343.12bn. See IGM's EPFR FUND FLOWS Report for more details

IGM European Weekly Credit Excel Spreadsheet

** 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 new issue data sets including distribution stats, book sizes, NICs and secondary market performance

IGM/EPFR Weekly Cheat Sheet in Excel

** IGM/EPFR Weekly Cheat Sheet provides proprietary intelligence on Euro primary market trends using various key data points in an easily digestible Excel spreadsheet. This includes Euro new issue volumes, average new issue concessions and book cover ratios across asset classes, as well as EPFR fund flow data and other key credit proxies

Potential primary supply next week

** European Financial Stability Facility (EFSF), rated AA/Aa1/AA is set to come to the EUR market in the w/c 6th Feb. having sent a Request for Proposal to a selection of banks from the EFSF/ESM Market Group this week

** Rentenbank, rated Aaa/AAA/AAA (stable/stable/stable) and guaranteed by the Federal Republic of Germany is readying a EUR long 7yr (Jul 2024) issue, having mandated BoA Merrill Lynch, Commerzbank, Credit Agricole CIB and LBBW

** Skandinaviska Enskilda Banken AB (SEB), is conducting a roadshow from Monday-Wednesday via ABN Amro, HSBC and SEB ahead of a potential inaugural Green EUR transaction. Land NRW is also holding Green investor meetings via BofAML, CITI, Credit Agricole CIB, JP Morgan and SEB ahead of an expected EUR 7-10yr deal

** American health care company McKesson Corporation (Baa2/BBB+/BBB+) hired Barclays, Deutsche Bank, MUFG and UniCredit for a series of investor meetings across Europe from 6th-9th February ahead of potential M&A driven debut multi-tranche EUR/GBP transaction. See here for details of recent McKesson acquisitions

Friday's broader market developments

** US payrolls topped estimates but earnings disappointed and the unemployment rate rose -- all of which saw Fed rate hike bets trimmed to 24% in March (via BBG WIRP) from circa 30% on Thurs

** Core govvie yields fell and risk markets rose in response to US data but EU stocks came off best levels in late afternoon trade. OATs and BTPs underperformed

** DXY fell on scaled back Fed hike bets

** iTraxx indices tighten a day after hitting fresh 2017 wides

Market snapshot (15.20)

EUR/USD +0.20% at 1.0781

SXXP +0.6% / SX7P +1.3%

GER 2yr +0.1bps at -0.758% / 10yr -1.bps at 0.410%

Brent +0.11% at USD56.95

iTraxx Main -0.9 at 71.4 / Crossover -6.3 at 290.7

Event risk to watch Monday (and in coming week)

** Data: The opening tone may be shaped by China's Caixin Services PMI, before Germany reports Factory Orders for Dec (est 0.5%, prev -2.5%) and the Eurozone its latest Sentix Investor Confidence (est 16.6, prev 18.2). The US agenda draws a complete blank

** Events: ECB's Smets and Draghi precede Fed's Harker, who is due to speak after EU hours

** Supply: No significant term supply scheduled on Monday 6th February

** Earnings: 6 Stoxx600 and 9 S&P500 companies report

** Viewpoint: Fixed Income Week Ahead - Spotlight on FOMC speak and Oval Office musings, IMF Board meeting on Greece and German trade from the 'currency manipulator' angle?

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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