Monday's primary highlights / weekly reports
** Euro supply totalled EUR3.3bn on Monday following the EUR35.125bn total the week prior. For a breakdown and pricing steps on the day's trades see DAILY EUR NICS & BOOKS
** Corporates did all the heavy lifting in Euro primary markets Monday accounting for 91% of the day's supply. That included a rare deal from Nokia, its first in over 8yrs. See CORP SNAPSHOT: Nordic issuers dominate primary
** The covered bond market saw no fresh Euro supply leaving a sterling bond from Toronto-Dominion Bank as the sole deal of the day. See COVERED SNAPSHOT: TD's sterling issue keeps market active
** Euro FIG contributed just EUR300m via a 5yr senior for Landsbankinn hf. See FIG SNAPSHOT: Euro supply slows, focus on dollars and sterling
** The latest ECB data on CSPP activity showed the average daily purchase rate rose slightly to E0.339bn (from EUR0.335bn). See ECB CSPP REVIEW
IGM European Weekly Credit Excel Spreadsheet
** 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 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
Tuesday's potential supply
** Republic of Italy, rated Baa2/BBB-/BBB+/BBBH (negative/stable/negative/stable), has mandated Deutsche Bank, J.P. Morgan, MPS Capital Services, SG CIB and UBS Investment Bank to joint lead manage a new syndicated BTP�i linked to the Eurozone HICP ex-tobacco. Maturity date will be 15-May-2028 .
** European Stability Mechanism (AA1/AAA) is preparing to sell a 10yr Euro benchmark after mandating Barclays, Credit Agricole CIB and Deutsche Bank on Monday
** ** In dollars, EIB (Aaa/AAA is marketing a new 5yr global due Jun 2022 via Citi, Deutsche Bank and JP Morgan which are seeking indications of interest at m/s +27 area IPTs
** Kommuninvest i Sverige Aktiebolag (Aaa/AAA) is live with a USD RegS/144a transaction at m/s -2bp area IPTs via Barclays, BMO and Scotiabank.
** Following a roadshow last week, Motability Operations Group plc could follow near-term with a EUR 8yr/GBP 15yr two-part issue via Barclays, HSBC, Lloyds Bank and NatWest Markets.
** Scentre Groupis also prepping to hit the screens with a 7-12yr EUR or GBP line via BNP Paribas and Credit Suisse after also wrapping up investor meetings last week.
**Oversea-Chinese Banking Corporation Limited (OCBC) could launch an inaugural EUR or USD-denominated mid-term covered issue via Barclays, BNP Paribas, Credit Agricole CIB and JP Morgan following a roadshow.
** Axa Bank Europe SCF (Aaa/AAA by Moody's/Fitch) is also on the menu having mandated BNP Paribas and Credit Agricole CIB as Global-Coordinators, and Commerzbank, ING, SG CIB and UniCredit as joint bookrunners for a new Euro 5-year OBLIGATIONS FONCIERES backed by prime Belgian and French mortgage collateral.
** There could also be some Swedish covered supply from Lansforsakringar Hypotek AB (LF Hypotek) which mandated Commerzbank, NatWest Markets, Nordea, SEB and UBS Investment Bank to lead manage its upcoming EUR 500mn (no grow) 7-year Covered bond transaction backed by Swedish residential mortgages.
Broader market developments on Monday
** EU risk assets trade on the back foot, ahead of looming event risk in the shape of the UK budget report (Weds), ECB policy verdict (Thurs) and US NFPs (Fri). SXXP on course for third straight day of losses with Deutsche Bank among the worst performers after bank announced a EUR8bn capital hike over the weekend
** Govvies - Demand for German paper still intact, while other EGBs got hammered with yields rising up to 2.5bps at the time of writing. Gilts start firmer then retreat. 10yr OAT/Bund yield spread widens but still hovers close to end Jan level
** iTraxx indices widen then move sideways with Main and Crossover both on course to end 5-day tightening run
Market snapshot (15.03 GMT)
SXXP -0.53% / SX7P -1.13%
GER 2yr -1.7bps at -0.847% / 10yr -1.5bps at 0.335%
Brent -0.02% at USD55.89
iTraxx Main +1.3 at 70.9 / Crossover +3.1 at 278.3
What to watch Tuesday
** Data: German Factory Orders are seen negative in Jan (prev 5.2%), while Eurozone final Q4 GDP is seen steady and in line with the flash estimate at 0.4% QoQ. UK reports Feb Halifax House Prices (f/c 0.4% MoM), while across the pond US trade figures form the key highlight
** Events: OECD releases its interim economic outlook (10.00)
** Supply: Austria plans to raise EUR1.32bn via 2026 and 2034 RAGB auctions (10.15), Germany EUR500m via a 2030 linker sale (10.30) while the USD24bn 3-yr Note sale kicks off this week's refunding cycle
** Earnings: Light agenda with 15 Stoxx600 and 3 S&P500 companies due to report
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