Friday's primary highlights / weekly reports
** Euro issuance drew a blank on the day, leaving total IG paper in the single currency at EUR20.4bn for the week courtesy of 24 separate tranches, this down from EUR32.925bn last week. Elsewhere, High yield saw a total of E3.207bn price via 8 deals, marking a 25 week high for the sector. For a full breakdown of this week's supply see IGM's WEEKLY VOUME Report
** The only supply of any sort in the IG primary market on Friday came courtesy of Rabobank which tapped its outstanding 2.25% Mar 2022 Sterling bond for GBP100m at UKT +90
** Corporate issuance dropped to EUR7bn this week, compared to EUR12.8bn last week which had marked the busiest week for the sector since the w/e 28th Oct 2016. For some observations of this week's corporate paper, see the IGM CORP SNAPSHOT
** FIG saw a modest EUR1.3bn print this week, well below the weekly average of EUR5.42bn seen so far this year. For a recap of this week's deals and our performance tracker of recent FIG deals, see the IGM FIG SNAPSHOT
** The covered market saw its joint slowest week year to date with just EUR1.5bn pricing in Euros. For more on the two trades which priced this week and a broader look at the covered market so far YTD, see IGM's COVERED SNAPSHOT
** Data from EPFR Global for Euro-denominated IG bond funds shows investors put money in for a seventh consecutive week, with the pace of inflows accelerating to an equivalent $1,086.78m. See IGM's EPFR FUND FLOWS Report for more detail.
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
** 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
Broader market developments on Friday
** European stocks rally, pushing Stoxx600 to a one week high but come off best levels after US Non-Farm Payrolls beat, fully cementing the probability of a Fed rate hike next week. Unemployment Rate as expected though at 4.7% (prev 4.8%), while Average Hourly Earnings MoM were a tad weaker than anticipated
** Bund yields received a boost from the risk on sentiment in stocks, 30yr Bund yield hit early 2016 level, while Gilts outperformed narrowing the 10yr Gilt/Bund spread to tightest level since early Sep 2016. USTs rallied after the data though. 10 and 30 year SPGBs touch widest level since Nov 2015
** EUR/USD carved out a three week high, on course for second day of gains
** iTraxx Main and Crossover trade mixed, latter on course for second day of tightening
Market snapshot (15.48 GMT)
SXXP +0.32% / SX7P +0.61%
GER 2yr +2.9bps at -0.853% / 10yr +4.6bps at 0.466%
10yr Gilt/Bund spread -4.7 at 75.0
Brent -0.73% at USD51.81, poised to print 4th straight day of declines
EUR/USD +0.68% at 1.0652
iTraxx Main +0.3 at 71.9 / Crossover -1.2 at 283.5
What to watch Monday
** Data: Extremely light agenda with just Italian Industrial Production figures for Jan the most noteworthy
** Events: Watching ECB's Liikanen (11.00), Lautenschlaeger (12.45) and Draghi (13.30)
** Supply: Italy to sell EUR7.25-9bn 2019, 2024, 2033 and 2046 BTPs (10.00)
** Earnings: Just 5 Stoxx600 companies report
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