** Supply stepped up a gear on Tuesday where EUR9.36bn of IG/HY paper printed in Euros via eight separate tranches, compared to EUR4.75bn on Monday. For the full list of Tuesday's EUR deals see IGM's DAILY EUR NICS & BOOKS
** SSA's led the way where Unedic printed a EUR1.75bn 15yr line whilst Republic of Austria made its first market visit of 2017 with a EUR4.5bn 10yr deal which printed at m/s -18 from a -17 area IPTs starting point on the back of blowout demand topping EUR7.5bn. See IGM SSA PREVIEW for more
** The corporate market was headlined by French chemicals company Arkema which returned after a more than two-year absence with a EUR700m 10yr transaction. The trade attracted books of over EUR2.3bn which allowed pricing to be tightened into a final m/s +93 from a m/s +110 area IPTs. Arkmea was joined on the day by fellow corp Scania which floated a EUR500m 3yr at 3mE +40. For more see IGM's CORP SNAPSHOT
** In FIG, Credit Agricole demonstrated that investors still have cash to go into floating rate product where its EUR1bn 5yr snr non-preferred FRN landed 15bps inside IPTs with a minimal NIC after demand reached ~EUR1.95bn. Senior deals launched Monday for Nationwide and Intesa Sanpaolo were holding at or near reoffer while higher beta subordinated paper led secondary spreads mostly wider, partly in response to heightened geopolitical concerns. See IGM FIG SNAPSHOT
Wednesday's potential primary issuance
** Japan Finance Organization for Municipalities (JFM), rated A1/A+, is taking IoIs for a USD Apr 2022 Global issue at m/s +78 area IPTs via Barclays, JP Morgan and Nomura
Broader market developments on Tuesday
** No overall direction in EU risk assets as investors remain cautious amid heightened geopolitical concerns in the run up to Easter
** Data-wise - German ZEW Current Conditions and Economic Sentiment both beat expectations, hitting their highest levels since July 2011 and August 2015 respectively. UK headline CPI was steady, as expected, while Eurozone Industrial Production missed
** European govvie yields rise across the board by 1.0 to 4.6bps in the 10yr space with peripherals underperforming the core and OATs the weakest link among the latter, briefly pushing the 10yr OAT/Bund yield spread out to a fresh multi-week wide
** Brent was on course to snap a 6-day rising streak at the time of writing
** Itraxx indices widen. Main and Crossover touch an almost three-week and one-week wide respectively
Market snapshot (14.43 BST)
SXXP +0.20% / SX7P -0.31%
GER 2yr -0.2bp at -0.861% / 10yr +0.8bp at 0.211%
Brent -0.13% at USD55.91
iTraxx Main +0.9 at 77.3 / Crossover +2.9 at 294.2
What to watch Wednesday
** Data: Spanish final CPI should affirm the flash print in March, before attention shifts to the UK labour market report where Jobless Claims are seen at -3k from -11.3k previously with the ILO Unemployment Rate seen steady at 4.7%. There are no top tier releases out in the US
** Events: UK BoE's Carney (09.30 BST) and Fed's Kaplan (15.00 BST) are the only central bank speakers scheduled on the day
** Supply: There is a chunky amount of sovereign issuance for markets to absorb Wednesday with no less than four Eurozone countries vying for attention. Italy with EUR8-10bn 2020 to 2036 BTPs, Ireland with EUR1-1.25bn 2023 & 2026 IGBs, Portugal with EUR1-1.25bn 2022 and 2025 PGBs and Germany with EUR3bn 2027 Bunds. Meanwhile, the UK is looking to raise GBP1.5bn with the sale of 2065 Gilts, while across the pond, the US has USD12bn 30-year Notes up for grabs
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