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Wednesday's primary highlights

** It was an active session for the European primary market on Wednesday where EUR8.75bn of paper printed, spearheaded by a EUR5bn syndicated Jul 2033 issue from the Kingdom of Spain (more below). This means we have already seen EUR24.925bn of supply this week, easily surpassing the EUR16.175bn which priced during the whole of last week. For the breakdown of Wed's EUR deals see the IGM DAILY EUR NICS & BOOKS Report

** The Kingdom of Spain took the accolade for the biggest trade of the day, with the sovereign issuing a EUR5bn Obligacion del Estado syndicated Jul 2033 line which landed at m/s +120 from a m/s +low 120s on the back of final demand over EUR14.5bn. See IGM's SSA PREVIEW for more

** In FIG, senior EUR supply was back on the agenda where KBC Group NV and ANZ New Zealand (Int'l) Limited vied for attention at the 5yr part of the curve with respective EUR1.25bn and EUR500m Mar 2022 lines. Combined demand in excess of EUR3.15bn allowed both deals to be tightened around 10bps from IPTs into final reoffer spreads of m/s +63 and +30 respectively. See IGM FIG SNAPSHOT

** United Overseas Bank Limited (UOB) and WL Bank both hit the screens with Covered transactions with the former issuing a multi-currency EUR500m 5yr / USD500m 3yr two-part Singapore legislative mortgage covered transaction whilst WL Bank went longer on the curve with a EUR500m 7yr Hypothekenpfandbrief issue. For background and relative value analysis on these deals see IGM's COVERED SNAPSHOT

** Whilst other sectors saw supply on the day, corporates drew a blank on Wednesday whilst secondary spreads ground tighter with Tuesday's Mar 2025 line from Parker-Hannifin Corp outperforming the rest of the deals on our snapshot. See the IGM CORP SNAPSHOT for our full tracker of recent deals and details of a hybrid roadshow for SSE

Thursday's primary prospects

** NWB Bank is taking IoIs for a new USD 5yr benchmark issue at m/s +39 area IPTs via BMO, BAML, HSBC and Scotia. See here for a preview of the deal

Broader market developments on Wednesday

** EU risk assets trade mixed in run up to FOMC policy Minutes

** Data-wise � All three German IFO components and UK Q4 GDP beat expectations

** Govvies - 2yr German yields hit a record low for third day running. French bonds volatile, 10yr spread to bunds hit a fresh post-crisis wide before snapping back in on reports centrist Bayrou was pulling out of presential race. 10yr Gilts outpace Bunds, former posts marginal new contract high of 126.94. Peripherals underperform with SPGBs the weakest link as market makes room for syndicated supply

** GBP/EUR carves out a fresh 2017 high of 1.1901, supported by UK Q4 GDP beat (at 0.7%, exp 0.6%) before paring best gains, while USD/JPY briefly dipped back below the 113.00 handle

** Brent wipes out large chunk of the 1.51% gain made Monday and Tuesday, hurt by a weaker dollar

** iTraxx indices start mixed but were on course to end wider, spanning a two-day tightening spell. Main touches 2-week wide

Market snapshot (15.20)

SXXP -0.11%, on course to end 3-day winning streak / SX7P -0.71%

Brent -1.25% at USD55.95

GBP/EUR +0.33% at 1.1857

GER 2yr -4.5bps at -0.928% / 10yr -4.1bps at 0.255%

iTraxx Main +1.3 at 75.2 / Crossover +1.5 at 298.8

What to watch Thursday

** Data: Final German Q4 GDP should match the flash print at 0.4% QoQ, while March Gfk Consumer Confidence is seen a tad softer and French Mfg Confidence steady in Feb. Both Italian Dec Retail Sales and UK Feb CBI Retail Reported Sales are forecast to rebound. No top tier US data on tap

** Events: ECB's Praet is penciled in to speak at separate times (08.55/11.00/13.00) at three different events in London. Also watching Fed's Lockhart (13.35), Kaplan (18.00)

** Supply: Italy to sell EUR2-2.5bn 2018 CTZs, and EUR0.75-1.25bn 2022 and 2026 Linkers, the UK GBP2bn 2026 Gilts while US has USD28bn 7-yr Notes up for grabs

** Earnings: 49 Stoxx600 (including Barclays) and 13 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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