Primary highlights and weekly reports
** The only primary supply of any kind in the primary market on Friday came courtesy of KfW which tapped its GBP 1.625% Jun 2020 bond for GBP250m at UKT +40
** Friday's supply blank in the single currency left the weekly IG/Split-rated total at just EUR16.175bn via 18 separate tranches, down from EUR27bn the week before. See IGM's WEEKLY VOLUME Report for more details on this week's issuance
** Corporates led supply with the asset class accounting for EUR7.225bn (44.67%) of the total issuance, spearheaded by a jumbo EUR4.25bn three-part from PEMEX. For some observations of this week's corporate supply see the IGM CORP SNAPSHOT
** The Covered sector remained active in the latest week with five issuers tapping the market for a combined EUR3bn. For some takeaways from the week see the IGM COVERED SNAPSHOT
** FIG recorded its quietest week of 2017 so far with just the one deal pricing courtesy of Iccrea Banca. See the IGM FIG SNAPSHOT for our secondary market tracker of recent FIG deals
** Data from EPFR Global for Euro-denominated IG bond funds shows investors put money in for a fourth consecutive week, although the pace of inflows slowed to an equivalent $182.06m from $924.25m the week before. See IGM's EPFR FUND FLOWS Report for more
** Unilever's stock spiked on Friday while its outstanding debt weakened sharply after the Anglo-Dutch consumer goods company was the subject of an approach by Kraft Heinz. For more see earlier COMMENT: Unilever sees huge price swings on Kraft Heinz interest
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, booksizes, NICs and secondary market performance
IGM/EPFR Weekly Cheat Sheet in Excel
** The 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
** Landesbank Baden-W�rttemberg (LBBW) has mandated ABN AMRO, Commerzbank, LBBW, Natixis and Santander to lead manage an 8yr EUR benchmark fixed-rate Hypothekenpfandbrief (Mortgage Covered Bond) which is expected as early as Monday
** EFSF, the European Financial Stability Facility is gearing up to visit the capital markets after sending a Request for Proposal to a selection of banks from the EFSF/ESM Market Group with regards to an upcoming transaction scheduled for the week of 20th February 2017
** The United Kingdom is set to tap its GBP 0.125% Nov 2065 Index-linked Treasury Gilt via Barclays, Lloyds Bank, NatWest Markets and UBS at some point during the week. Most likeley Tuesday
** Caisse des Depots et Consignations (CDC) could launch a EUR 5-7yr debut EUR green bond after holding a series of investor meetings via BNP Paribas, CA CIB, HSBC, JP Morgan, Natixis and SG CIB
** Parker-Hannifin Corporation and Telefonaktiebolaget LM Ericsson could pull the trigger on EUR deals after both holding respective roadshows in the last week whilst 2i Rete Gas S.p.A. and Avery Dennison Corp are both set to start a series of investor meetings in the coming week
Friday's broader market developments
** While Thursday saw reflation trades run into resistance, Friday saw more of the same with havens getting a lift as more chips were taken off the table into the US holiday weekend
** French political concerns rose on prospects of a tie up between left wing candidates, seen as boosting the chances of a Le Pen victory. OATs widened to bunds seeing the 10yr spread peak at 74bps, but still inside 78bps level seen in prior week.
** UK retail sales failed to bounce in Jan to follow the big drop seen in Dec, exacerbating worries about a nascent squeeze on consumers caught in a pincer movement between slowing wage growth and rising prices. 10yr UK yields hit lowest level since Nov 9th
** Stoxx600 was on course for a second straight fall, driven by energy. Consumer stocks jumped though as Unilever surged up to 12% after Kraft confirmed merger proposal
** iTraxx indices were on course to widen for a second day but were well off intraday wides in late afternoon trade
Market snapshot (15.40GMT)
SXXP -0.15% / SX7P -1.0%
GER 10yr -4.8bps at 0.298%
UST 10yr -3.9bps at 2.408%
FRA 10yr +1.3bps at 1.022%
UK 10yr -6.0bps at 1.197%
DXY +0.34% at 100.79
iTraxx Main +0.9 at 74.3 / Crossover +4.3 at 299.4
What to watch Monday (and next week)
UK based attendance will pick up as players return from half-term but the holiday baton passes to the US where it's President's Day.
** Data: UK Rightmove House Prices are seen decelerating to their slowest annual rate in 21-months in Feb. German PPI is seen doubling to 2.0% YoY in Jan, marking a ninth straight rise. EZ Advance Consumer Confidence is expected to show consumers remain upbeat in Feb.
** Events: Eurogroup meet which will include a discussion on the state of play in Greece with regard to the bailout programme. More detail on the schedule can be seen here
** Supply: No significant term supply scheduled in European or US markets
** Earnings: 2 Stoxx600 companies report
** Viewpoint: Fixed Income Week Ahead - Fed speak the US highlight, Eurogroup to discuss Greece. Flash PMIs on the agenda, manufacturing cost input component of interest
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