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Thursday's primary highlights

** The Euro primary market remained fairly subdued on ECB day where a modest EUR2.8bn of IG paper was printed in the single currency to follow the EUR2.9bn issued Wednesday. For a breakdown of Thursday's deals see IGM's DAILY EUR NICS & BOOKS

** US issuer Johnson Controls International plc spearheaded corporate supply on the day with an SEC-registered EUR1bn Sep 2023 issue which priced at m/s +70 from a +85 area IPTs start point. JCI was joined on the day by Italian utility company A2A SpA which refreshed its Euro curve with a EUR300m no grow Mar 2024 line. For more on both and our performance tracker of recent corp bonds see the IGM CORP SNAPSHOT

** In FIG, Nykredit Realkredit A/S printed its first senior resolution note of 2017 after pricing two in the format last year. This time around its EUR500m Jun 2020 line landed at m/s +45 from a +50 area IPTs on the back of books over EUR800m. Demand was significantly below that seen for the issuer's two prior SRNs. See IGM's FIG SNAPSHOT

** In the SSA market, the sole issuer to tap the EUR market was Joint Laender #52 (Bremen, Hamburg, Rhineland-Palatinate, Saarland and Schleswig-Holstein - 20% each) which brought a EUR1bn Mar 2024 transaction in line with area IPTs at m/s -17, seen as being largely flat to fair value. The distribution stats for this deal can be found here

** Away from the single currency, Asian Development Bank launched a 4yr USD Global FRN, whilst Swedish Export Credit Corporation (SEK) tapped its outstanding Oct 2018 FRN for USD300m at 3mL +4

Friday's potential primary supply

At the time or writing there were no confirmed deals to report for Friday and with more headline event risk in the form of the latest US payroll data, supply is again expected to be limited. Scentre Group could hit the screens with a 7-12yr EUR or GBP line, however, after holding an investor roadshow last week via BNP Paribas and Credit Suisse.

Broader market developments on Thursday

** Govvies - 2/10yr German yield curve bear steepens, spread widens above 124bps peaking at 125.88bp amid a broad rise in EGB yields, although 10yr Gilts outperform following smooth 2036 Gilt Linker auction

** ECB kept interest rates on hold, as expected, and raised its 2017 and 2018 inflation forecasts to 1.7%/1.6% from 1.3%/1.5% respectively. Economic risks were said to be less pronounced, but still to the downside. New TLTROs not discussed.

** EU equities were on course to end the session on a mixed footing. Stoxx600 recovers from worst level as bank stocks outperform

** EUR/USD rises, putting it on course to wipe out two straight days of declines totaling -0.39%

** Brent hits lowest level since early Dec 2016 having dropped below the USD52.00 handle intra-day

** iTraxx indices sea sawed again but were on track to close tighter at the time of writing. Main touches widest level since 28th Feb intra-day, Crossover on course to snap 3 consecutive days of widening

Market snapshot (14.56 GMT)

SXXP -0.09% / SX7P +1.05%

EUR/USD +0.57% at 1.0597

GER 2yr -0.4 at -0.874% / 10yr +5.1bps at 0.415%

Brent -0.83% at USD52.67

Itraxx Main -0.3 at 71.8 / Crossover -0.4 at 285.6

What to watch Friday

** Data: Industrial Production figures from France and the UK are likely to form the key European highlights and provide an early signal on how Q1 started out before attention shifts to US NFPs (est 200k, prev 227k)

** Events: None scheduled

** Supply: there are no significant term suctions scheduled on Friday 10th March

** Earnings: 2 Stoxx600 companies are due to report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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