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Thursday's primary highlights

** It was another slow session for the European primary market on Thursday where just EUR1.75bn was printed via three deals. With one day to go, this leaves weekly supply at just EUR16.175bn, still well off the EUR28.9bn seen last week. See the IGM DAILY EUR NICS & BOOKS for more details on the trio to price Thursday

** British engineering business Smiths Group had the corporate market to itself on Thursday and was met with an extremely warm response from investors. The borrower attracted blowout demand in excess of EUR4.25bn for its EUR650m 10yr line which was ramped in to a final reoffer of m/s +130 from a +155 area IPTs starting point. For more, including the official comps list see the IGM CORP SNAPSHOT

** Nationwide Building Society visited the covered bond market for the first since the Brexit vote on Thursday with a new EUR1bn 7yr UK covered bond which landed at m/s +11 from initial guidance of +14 area. The trade attracted demand of over EUR1.6bn whilst the final NIC was pegged at around 4.5bps. See IGM's COVERED SNAPSHOT

** Away from the single currency, The Province of Alberta printed a debut GBP650m Nov 2021 line at UKT +58 (from +60 area IPTs) on the back of books approaching GBP800m

Friday's primary supply prospects

** At the time of writing there were no confirmed deals for Friday, although US borrower Parker-Hannifin Corporation could pull the trigger on a EUR and/or USD deal after wrapping up an investor roadshow on Thursday via Citi and Morgan Stanley. This is, however, more likely to come in the early part of next week

Thursday's broader market developments

** Reflation trades ran into resistance - follows string of gains/record highs on global stock indices. Profit taking the go-to excuse

** DXY weakened, bets on a Fed hike in March receded to 38% (BBG WIRP) while Stoxx600 was on course for first drop in 8 days

** Govvies - bunds regained footing while peripherals outperformed as ECB minutes showed �that limited and temporary deviations were possible and inevitable" in the ECB's capital key and progress toward inflation goal was insufficient

** Datawise: US data a clean sweep of beats with housing starts/permits, jobless claims and Philly Fed all better than expected with the latter more than double forecasts

Market snapshot (15.35 GMT)

SXXP -0.4% / SX7P -0.7%

GER 2yr +1.9bps at -0.791% / 10yr -0.5bps at 0.365%

UST 10yr -2.7bps at 2.466%

POR 10yr -10.1bps at 3.936%

DXY -0.58% at 100.59

iTraxx Main +1.0 at 72.8 / Crossover +2.1 at 293.1

Friday's event risk

It's a quiet end to the week in terms of data and events while US players will be gearing up for a holiday weekend (President's Day Monday).

** Data: UK Retail sales are seen bouncing back in Jan after a big drop in Dec but any downside surprise will exacerbate concerns of a slowdown among consumers who face a potential squeeze in coming months from higher inflation and slowing wage growth. US data is second tier

** Events: No significant events scheduled

** Supply: No significant term supply scheduled in European or US markets

** Earnings: 10 Stoxx600 and 9 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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