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Thursday's primary market highlights

** Primary IG supply picked up on Thursday where EUR4.05bn printed in the single currency, up from EUR1.55bn Wednesday. Supply was spearheaded by a revival of FIG borrowers, which including a Westpac covered deal, accounted for EUR3.55bn of the overall issuance total. For the breakdown of Thursday's EUR trades see the IGM DAILY EUR NICS & BOOKS

** The FIG market sprang into life where four issuers printed new deals in the single currency with three of those coming in the subordinated sub sector. Combined demand for the EUR1.3bn of sub paper from Jyske, Bankinter and Helvetia topped an impressive EUR6.9bn whilst Bank of Nova Scotia attracted books of around EUR1bn for its EUR750m 5yr senior line. See IGM FIG SNAPSHOT

** After recently concluding a roadshow Westpac Securities NZ Limited printed a EUR1bn Apr-2022 New Zealand legislative Covered Bond at m/s +7 from initial guidance of +12 area. The deal, which marked the first from the NZ jurisdiction this year, amassed demand of around EUR1.9bn. See IGM's COVERED SNAPSHOT for more

** American Tower Corporation kept corporate supply ticking over with an SEC-registered EUR500m 5yr which landed at m/s +100 having been squeezed in from m/s +110. For more on this trade and our performance tracker of recent corp deals see the IGM CORP SNAPSHOT

Friday's primary supply prospects

At the time or writing there were no deals confirmed for the traditionally quieter day of Friday, although the following issuers could possibly pull the trigger on a new deal:

** Autonomous Community of Madrid (Baa2/BBB+/BBB) may launch a debut EUR 5yr Sustainable Bond after mandating Barclays, BBVA, Credit Agricole CIB, ING and Natixis on Tuesday afternoon.

** The cities of Essen, Gelsenkirchen, Remscheid and Solingen, located in the State of North Rhine-Westphalia (NRW), have mandated DekaBank, HSBC and UniCredit to act as joint lead managers for a EUR250mn (no-grow) 10yr fixed rate bond transaction (Staedteanleihe No. 5)

Broader market developments on Thursday

** No overall direction in EU risk markets today with players largely sidelined on approach to month and quarter end, despite a slight pick-up in oil

** OATs initially rally in line with Bunds and Gilts before changing direction to join BTPS and SPGBs on the backfoot. 10-30s OAT curve actually bear steepens. Price action perhaps aligned to residual political worries. Bunds outperform as German CPI comes in much softer than expected in March (at 1.5% YoY, exp 1.9%, prev 2.2%), dampening any expectations of ECB tightening policy anytime soon

** Brent carves out a two-week high, then retreats, before regaining its footing to hit an almost three-week high

** iTraxx indices were on course to end the day mixed at the time of writing where Crossover was seen outperforming the Main Index. Price action follows a fresh series tight for Main on Weds.

** USD/JPY touches a one-week high amid hawkish Fed signals from overnight

Market snapshot (14.27 GMT)

SXXP +0.27% / SX7P -0.15%

GER 2yr +1.7bps at -0.751% / 10yr -0.5bps at 0.334%

Brent +0.29% at USD52.57

iTraxx Main +0.2 at 75.1 / Crossover -1.2 at 292.2

DXY +0.05% at 100.050, on course to close above the 100 handle for the first time since 3rd March

What to watch Friday

** Data: Flash Eurozone CPI will be closely watched, following softer than expected Spanish and German inflation prints on Thursday. French and Italian CPIs precede. Also watching German Retail Sales and latest labour market report. In the UK, GfK Consumer Confidence is seen a tad weaker, the pace of Nationwide House Price growth is expected to half, while UK Q4 final GDP should match the prior reading. Across the pond, watching Personal Income and Spending, Chicago PMI, UoM Sentiment as well as the PCE Core index

** Events: ECB's Coeure (09.00), BoE's Haldane (21.00) and Fed's Kashkari (14.00) and Bullard (14.30) are all penciled in to speak

** Supply: There are no significant term auctions scheduled on Friday 31st March

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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