Monday's primary highlights / weekly reports
** The primary market got off to a fairly measured start on Monday where a combined EUR4.5bn of IG paper printed in the single currency. See IGM DAILY EUR NICS & BOOKS for the full list of the deals to price Monday
** IG Corporates accounted for EUR1.5bn of Monday's total with RELX Finance and Statkraft printing respective EUR1bn 4/7yr two-part and EUR500m 8yr transactions on the back of combined demand topping EUR4.1bn. For more on these deals, a rare Sterling issue from American Honda and details of several additions to the corp pipeline see IGM's CORP SNAPSHOT
** In FIG, the sole visitor to the market was UBS Group Funding (Switzerland) AG which printed a self-led EUR1.75bn 5.5NC4.5 floater at 3mE +70 from a 3mE +80 area IPTs starting point on the back of demand over EUR3bn. See IGM FIG SNAPSHOT
** The ECB released its latest CSPP update on Monday afternoon, with the central bank revealing it holds EUR70.428bn of corporate securities as of 10-Mar 2017, which points to a monthly purchase rate of EUR7.58bn. See IGM's ECB CSPP Review for more
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
** 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
Source: Informa Global Markets (IGM)
Tuesday's potential primary supply
** Oversea-Chinese Banking Corporation Limited (OCBC) is waiting in the wings with a EUR500m no grow 5yr Singaporean Covered Bond via Barclays, BNP Paribas, Credit Agricole CIB, JP Morgan and OCBC. For more, including the official comps list see IGM COVERED SNAPSHOT
** Credit Agricole Cariparma is eyeing a EUR1.25bn 8/12yr two-part covered Obbligazioni Bancarie Garantite transaction via Credit Agricole CIB, Danske Bank, ING, LBBW, Santander and UniCredit
** Peugeot SA (Ba2/BB+) could launch a new EUR 7yr benchmark after holding an investor call on Monday via BNP Paribas, CA CIB, Commerzbank, HSBC, Natixis, Santander and SGCIB
** Split-rated US healthcare company Medical Properties Trust (Ba1/BBB-) may go live with a EUR 8yr after conducting a series of telephonic fixed income investor meetings on Monday via Credit Agricole CIB and Goldman Sachs
** World Bank (International Bank for Reconstruction & Development) is taking IoIs for a USD Apr 2020 benchmark at m/s -3 area IPTs via BNP Paribas, Deutsche Bank, Morgan Stanley and RBC
** European Bank for Reconstruction and Development (EBRD) is working a USD500m 3yr Global floating rate note at 3mL flat area IPTs via Barclays, BAML and Citi
Broader market developments
** EU equities make minor advance, Stoxx600 led higher by materials. Markets in holding pattern ahead of week's risk events in the shape of central bank policy verdicts from the Fed, BoE and BoJ and Wednesday's Dutch general election.
** GBP/USD rallies amid reports Article 50 could be triggered as early as Tuesday, officially starting Brexit negotiations. Price action follows a 0.73% decline last week
** Brent stabilises having hit an over 4-month low earlier on Monday. That follows 4 consecutive days of losses, having slumped 8.29% last week as oversupply concerns threaten price action
** Govvie yields retreat from Friday's highs with bulls back in the driving seat. 10yr SPGB/Bund spread widens the most, while 10yr PGBs outperform.
** iTraxx Main touches widest level in almost 2-weeks. Main and Crossover both on course for second straight day of widening
Market snapshot (14.59 GMT)
SXXP +0.43% / SX7P +0.22%
GBP/USD +0.46% at 1.2225
GER 2yr +1.9bps at -0.834% / 10yr -2.5bps at 0.453%
Brent +0.04% at USD51.39
iTraxx Main +0.6 at 72.9 / Crossover +2.9 at 287.7
What to watch Tuesday
** Data: The opening tone could be set by China as it reports Retail Sales and Industrial Production figures overnight, with both forecast to pick up in Feb. Looking at the European agenda, focus will be on the latest German ZEW modules, which are forecast to improve in March, alongside Eurozone Jan Industrial Production which is seen rebounding, while German and Spanish final CPIs should affirm their flash prints. US reports Feb PPI (est 0.1% MoM, prev 0.6%)
** Events: None scheduled
** Supply: The Netherlands aims to sell EUR2-3bn 2022 DSLs, while the UK plans to add GBP2.25bn to its coffers with the sale of 2027 Gilts
** Earnings trickle down to just 7 Stoxx600 companies as the current reporting cycle nears an end
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