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Wednesday's primary market highlights

** The European primary market saw another EUR9.35bn of IG/split rated Euro paper print on Wednesday, bringing the total so far this week up to EUR23.15bn, easily surpassing the EUR14.095bn which priced in the whole of last week. See IGM DAILY EUR NICS & BOOKS for the composition of Wednesday's supply

** Republic of Finland (Aa1/AA+/AA+) headlined Euro SSA primary activity while the recent flow of short-dated dollar supply was given another boost, this time by BNG. For more details see IGM's SSA Preview

** The corporate sector was back in action on Wednesday thanks to Ryanair DAC and Unilever NV which issued a EUR750m Aug 2023 and a EUR1.2bn 6/10yr two-parter respectively. Combined demand for the three tranches stood at a healthy EUR8bn+. For more on these deals, as well as a look at the recent additions to the corp pipeline, see the IGM CORP SNAPSHOT

** ING Groep became the ninth issuer this year to raise Tier 2 Euro funding with a EUR750m 12NC7 trade which landed at m/s +215 (from +220 area IPTs) on demand of around EUR1.5bn. See IGM's FIG SNAPSHOT

** F. van Lanschot Bankiers N.V. was the sole visitor to the covered market with a EUR500m (no grow) 10yr Conditional Pass-Through Covered Bond transaction which priced at m/s +19, having been tightened from initial guidance of m/s +23 area on the back of books topping EUR1bn. See the IGM COVERED SNAPSHOT for more on the trade

Thursday's primary prospects

** Republic of Latvia (rated A3/A-/A-; all stable outlook) has mandated Deutsche Bank, Goldman Sachs International and SG CIB to lead manage a tap of its outstanding EUR650m 0.375% notes due 7 October 2026. The issuer is also exploring the possibility of a new 30yr Reg S tranche, subject to investor feedback

** Eika Boligkreditt AS looks set to add to the EUR2bn of covered supply already seen this week with the issuer mandating Commerzbank, Credit Agricole CIB, Deutsche Bank and Nordea for a EUR500m no grow 7yr covered bond which will be backed by prime Norwegian Residential Mortgages, and is expected to be rated Aa1 by Moody's

** City of Mainz has mandated Deutsche Bank, LBBW and UniCredit to lead manage an unrated EUR non-benchmark 7.5-year floating rate Stadtanleihe

** Asian Development Bank (ADB), rated Aaa/AAA/AAA, hired BofA Merrill Lynch, HSBC, Morgan Stanley and TD Secs for a new 5 year USD Global benchmark and was taking IoIs at m/s +19a IPTs.

** FMS-Wertmanagement (Aaa/AAA, both stable) is working a USD 2yr RegS only floater at 3mL +3bp area via Barclays, Deutsche Bank, JP Morgan and Nomura.

Wednesday's broader market developments

** A common thread running through Wednesday's market moves was fading re-flation bets while the 5-day dollar rally stalled

** Govvie curves bull flattened, led by Portugal, while 10yr UK yields touched a 14-week low despite looming 30yr auctions from UK and US (Thu)

** Haven demand lifted gold to a 9-week high

** Euro stocks slid in afternoon trade, with banks and energy the weakest links

** iTraxx indices - 3rd straight day of widening pushed Main and Crossover to fresh 2017 wides

Market snapshot (15.36 GMT)

EUR/USD +0.17% at 1.0702

SXXP +0.00% / SX7P -1.76%

GER 2yr -1.2bps at -0.812% / 10yr -5.3bps at 0.293%

POR 10y -14.0bps at 4.049%

Brent -0.49% at USD54.78, Spot gold +0.68% at 1242.26

iTraxx Main +0.9 at 77.0 / Crossover +4.5 at 309.4

Event risk to watch Thursday

** Data: UK RICS data should show the housing market cooled further in Jan. German trade data is expected to show imports and exports fell in Dec while US Jobless claims are seen rising marginally

** Events: Two Fed officials speak while BoE's Carney speaks after European markets close

** Supply comes from Ireland (EUR1-1.25bn 2022/2026), UK (GBP 2.5bn 2047) and US ($15bn 30yr)

** Earnings: 32 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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