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Wednesday's primary highlights

** Euro issuance across IG/HY products picked up to EUR5.265bn via 11 separate tranches on Wednesday, compared to EUR4.54bn via just 5 deals on Tuesday. For the full supply breakdown seen the IGM DAILY EUR NICS & BOOKS Report

** In FIG, a rare T2 deal from Spanish insurer Mapfre S.A. was a blowout (EUR4bn+ book for EUR600m size, landing 37.5bps inside IPTs) and was bid 70 cents higher after pricing. BFCM also found good demand for its EUR500m T2 bullet which was more than 2.5 times covered. See IGM's FIG SNAPSHOT

** Corps accounted for EUR1.2bn of the day's total supply with Edenred and Ferrovial issuing respective EUR500m 10yr and EUR500m 8yr trades on the back of combined demand topping EUR3bn, whilst Finnair Plc added a sub-bmk EUR200m 5yr line. See IGM's CORP SNAPSHOT for more

** State owned railway company SNCF Reseau went long on the curve and printed a EUR1bn 17yr Green bond at OATs +34 from a +35 area starting point on the back of demand last seen at �over EUR1bn" IGM's SSA PREVIEW: Recent OAT outperformance to support SNCF Reseau EUR 17yr?

Thursday's potential primary supply:

** German automaker Volkswagen AG (A3/BBB+) is preparing to hit the screens for the first-time since the company's emissions scandal broke in September 2015 with a jumbo four-part deal which will consist of a 2yr floating rate note and fixed rate tranches maturing in four, 6.5 and 10yrs. This follows an investor call on Wednesday via Barclays, BNP Paribas, Citi, Mizuho Securities, SGCIB and UniCredit. See earlier IGM COMMENT: Volkswagen gears up for unsecured market return for more

** PKO Bank Hipoteczny is readying a EUR500m no grow Jan 2023 covered bond via LBBW, PKO Bank Polski, Santander, SG CIB and UniCredit. The deal carries an expected rating of Aa3 by Moody's For RV analysis on this deal see IGM's COVERED SNAPSHOT

Broader market developments on Wednesday

** EU risk assets start on the back-foot, following a negative handover from Asia and US as the Trump inspired rally continues to fade (see Viewpoint: 'Trump-trade' under the cosh), albeit with equities off their worst levels. DAX briefly hit its highest level this month

** Data-wise, the agenda was light. US Existing Home Sales for Feb missed expectations, while the Jan FHFA House Price Index MoM also missed

** Govvies inspired by risk off sentiment in stocks, 10-30s curves broadly bull flatten, gilts and bonos lead rally in 10yr space

** Brent carves out a fresh 4-month low, having dropped as much as 2.45% on the day to sub-USD50.00, and remains on course for its third straight day of losses. That follows Tuesday's API data that showed a 4.53m brl inventory build for last week, while Wednesday's EIA report only added to oversupply concerns with crude stocks up 4.954k brls (exp +3k brl)

** iTraxx indices widen, in line with broader risk-off price action in global markets

Market snapshot (14.54GMT)

SXXP -0.67% / SX7P -0.97%

GER 2yr -2.1bps at -0.782% / 10yr -5.1bps at 0.404%

Brent -1.65% at USD50.12

iTraxx Main +0.9 at 77.9 / Crossover +5.7 at 302.5

What to watch Thursday

** Data: Watching UK Retail Sales and CBI Retail Sales data following the jump in headline YoY inflation above the BoE's 2% target on Tuesday. Germany, France and the Eurozone report sentiment indicators, starting with German GfK Consumer Confidence (exp steady at 10.0). Attention then shifts to US, where New Home Sales and Regional Activity data are due

** Events: Watching a handful of central bank speakers in the shape of BoE's Broadbent, ECB's Nouy and Lautenschlaeger and Fed's Yellen, Kashkari and Kaplan. Also watching latest ECB monthly bulletin, and results of the latest ECB TLTRO allotment

** Supply: There are no significant term auctions scheduled in Europe on the morning of Thursday 23rd March, while US hopes to raise USD11bn via a 10yr TIPs auction after EU hours

** Earnings: 8 Stoxx600 and 3 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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