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Wednesday's primary highlights

** Euro supply totalled EUR2.275bn on Wednesday, lifting total issuance for the week up to EUR14.425bn which remains well short of the EUR28.9bn printed last week. For the lowdown of Wednesday's EUR deals see IGM's EUR DAILY NICS & BOOKS report

** Covered bonds dominated supply on the day where three deals from as many jurisdictions printed for a total of EUR1.5bn on the back of combined investor interest of over EUR3.4bn. For more including relative value analysis on the trades from NORD/LB Luxembourg S.A, BNP Paribas Home Loan SFH and BerlinHyp AG, see the IGM COVERED SNAPSHOT

** Unibail-Rodamco SE refreshed its well-stocked EUR curve with a EUR600m Feb 2028 deal which landed at m/s +65 from a +75/80 IPTs starting point. Final demand for the transaction was over EUR1.1bn and the final NIC was circa 6bps. See IGM's CORP SNAPSHOT for more

** Sterling issuance was also on the menu on Wednesday courtesy of Toyota Motor Credit Corp (TMCC) which printed a GBP350m Sep 2021 transaction at UKT 3.75% Sep-2021 +70 (from +75 area IPTs) on the back of books over GBP500m. This equated to a NIC of around 10bps at reoffer

** FIG drew a blank, leaving us with just the one EUR deal from the asset class so far this week, although secondary spreads on recent FIG deals continued to edge tighter. See the IGM FIG SNAPSHOT for our full performance tracker of recent issues

Thursday's potential primary supply

** City of Mainz (unrated) is working a EUR100m no grow 7.5yr (Sep 2024) floating rate note at 3mE +40 area IPTs via Deutsche Bank, LBBW, UniCredit

** The Province of Alberta (Aa1/AA) is taking IoIs for a debut GBP Nov 2021 benchmark issue at UKT (3.75% Sept-2021) +60 area IPTs via HSBC & RBC CM

Broader market developments

** European risk assets start firmer (led higher by financials), but were on course to end off best levels despite mostly firmer than expected US data (see below) which has lifted Fed March rate hike odds to circa 42% (BBG WIRP) from 30% pre-Yellen

** Data-wise - US Advance Retail Sales MoM beat at 0.4% and previous revised higher; CPI MoM carves out biggest monthly increase since Feb 2013 at 0.6%; Empire Manufacturing more than doubles to hit its highest level since Sep 2014 at 18.7; while Real Average weekly earnings and Industrial Production both missed

** DXY was on course for 11th consecutive day of gains, having hit its highest level since 12th Jan (session high 101.760)

** Govvies � 10yr UST yields pushed above 2.5%, touching highest level since end of Jan. Core and peripheral EGBs get whacked, Gilts and OATs trade close to unchanged having pared best gains

** iTraxx indices tighten but with Main and Crossover off fresh weekly tights touched earlier in the day

Market snapshot (15.48GMT)

SXXP +0.29% / SX7P +1.38%

GER 2yr +0.8bps at -0.806% / 10yr +1.7bps at 0.380%

UST 10yr +3.8bps at 2.506%

DXY +0.06% at 101.310

ITraxx Main -1.5 at 71.6 / Crossover -4.8 at 289.8

What to watch Thursday

** Data: There is no top tier data out in Europe. For the record though, France reports Q4 ILO Unemployment (est 9.8%, prev 10.0%). Focus then shifts to US Housing data (Starts and building permits) and Philly Fed

** Events: ECB releases latest monetary policy minutes (12.30 GMT). ECB's Nowotny and Coeure are penciled in to speak (13.00/14.00 GMT resp). Fed speakers are Williams (20.10) and Dudley (00.15). UK''s UKIP party holds two-day spring conference starting Thursday

** Supply: Watch out for any concession going into auctions from Spain (EUR4-5bn 2022, 2027 and 2028 bonds) and France (EUR6-7bn 2020 and 2022 OATs, and EUR1.5-2.5bn 2028 OATi)

** Earnings: 15 Stoxx600 and 14 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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