** Despite event risk in the form of the Fed policy verdict and the Dutch elections, the IG/HY primary market still saw EUR5.6bn print on Wednesday, which marks the busiest day of the week so far. For the full list of deals to price see the IGM DAILY EUR NICS & BOOKS
** IG corporates dominated with EUR4bn (71.4%) of Wednesday's total supply, spearheaded by SCA Hygiene's EUR2bn four-trancher which attracted combined demand of EUR7bn+. Elsewhere, ENGIE printed a EUR1.5bn two-part 8/11yr Green transaction whilst Proximus issued a EUR500m 5yr line. For more see IGM's CORP SNAPSHOT
** The only other supply in the single currency came from BNP Paribas SA which brought a EUR1bn Sep 2022 non-preferred floating rate note at 3mE +85 from a +100 area IPTs starting point on the back of demand at EUR1.7bn. See IGM FIG SNAPSHOT
** The covered bond market drew a blank, leaving us with just EUR2bn of paper in the single currency so far this week, courtesy of Tuesday's deals from Credit Agricole Cariparma and OCBC. For a recap, secondary market performance and distribution stats for both, see IGM's COVERED SNAPSHOT
Broader market developments on Wednesday
** EU risk assets hold onto gains going into the close, supported by a bounce in oil prices from Tuesday's multi-month low. Volumes were light however with attention squarely on the Fed's policy announcement, in particular the updated dot plot and Fed Yellen's presser (18.30 GMT) for indications on the future rate path with a hike already priced in for March. Dutch election results were also in the spotlight on Wednesday, with the initial exit poll due after polls close at 20.00 GMT
** Brent appears on track to close higher for the first time in seven days, having slumped 9.37% over the previous 6 sessions. Price action follows Tuesday's API data that revealed a surprise draw in inventories, while Saudi reaffirmed its commitments to production cuts via a statement released after European hours on Tuesday night
** Govvies � 10yr yields decline 2.5-4bps with BTPs leading the charge, 10/30s SPGB curve bull flattens, while PGBs form the weakest link across almost all maturities bar the 2yr where OATs suffered most. Latter likely influenced by the Dutch election (voting today), which is seen as a test of far-right populism in Europe ahead of the French general election (first round 23rd April)
** iTraxx indices tighten. Main respects Tuesday's ranges, while Crossover breaches Tuesday's intra-day low
Market snapshot (14.59 GMT)
SXXP +0.39% / SX7P +1.02%
GER 2yr -1.2bp at -0.840% / 10yr -2.5bps at 0.416%
OAT 2yr +1.5bp at -0.511% / 10yr -2.5bp at 0.416%
Brent +1.20% at USD51.53
iTraxx Main -1.3 at 72.9 / Crossover -5.6 at 285.9
What to watch Thursday
** Data: Light European agenda with Eurozone final inflation seen matching the flash print at 2% YoY. In the US, watching the Fed's preferred JOLTs as well as Housing Starts, Building Permits, and the Philly Fed Business Outlook
** Events: The opening tone may be influenced by the Dutch election result before attention shifts to the Bank of England and its latest policy announcement (no change expected) with Switzerland's SNB set to unveil its own policy decision in the interim
** Supply: Spain plans to raise EUR4-5bn via 2022, 2026, 2028 and 2046 bond auctions, while France has EUR6-7bn 2020, May 2022 and Oct 2022 OATs and EUR1.5-2bn 2023, 2030 and 2040 OAT Linkers up for grabs
** Earnings: 7 Stoxx600 and 2 S&P500 companies are due to report
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