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** It was another subdued session for the primary market on Wednesday where only two deals priced for a combined EUR6bn. For more details on the duo of transactions see IGM's DAILY EUR NICS & BOOKS

** Supply was spearheaded by a jumbo EUR5bn 5yr Global deal from KfW which landed at m/s -34 from initial guidance of m/s -31 area on the back of demand topping a blowout EUR9bn. This equated to a final NIC of around 4bps. The bond also went on to perform in secondary where it was bid 11 cents above reoffer a short while after pricing. See earlier IGM SSA PREVIEW for more

** Banco de Sabadell S.A reopened the EUR covered bond market, which had lay dormant since 4th April, with a well-received EUR1bn 10yr Cedulas Hipotecarias. The trade attracted demand of over EUR2.4bn which allowed the borrower to tighten pricing into a reoffer of m/s +33 from +40 area initial guidance. For more including relative value analysis see IGM's COVERED SNAPSHOT

** FIG issuers stayed sidelined on Wednesday after just the one deal on Tuesday in the form of Banco Santander's EUR750m AT1 issuance. Although the issue received a rather tepid response from investors compared to the other Euro denominated AT1 deals launched this year, it has gone on to perform post-pricing. See IGM FIG SNAPSHOT

** Corps drew a blank but there was an addition to the new issue pipeline where Brussels Airport Company SA/NV hired leads for a European roadshow which is due to kick off on Friday. For more on this and our secondary market performance tracker of recent corporate issues see IGM's CORP SNAPSHOT


Thursday's potential primary supply

** Banco Santander Totta S.A could follow hot on the heels of Banco de Sabadell with a covered bond of its own. The borrower has hired Deutsche Bank, Santander, SG CIB and UniCredit to lead manage a EUR 7-10yr Obrigacoes Hipotecarias (Portuguese Mortgage Covered Bond) which is expected to be rated A1/A/A by Moody's/Fitch/DBRS

** Japan International Cooperation Agency (JICA), is taking IoIs at m/s +65 area IPTs for a USD500m no grow 10yr line via BAML, BNP Paribas and Mizuho. The trade is expected to be rated A+

** QBE Insurance Group Limited (A- S&P) may launch a new USD 5.5yr Green bond via CA CIB, HSBC, Lloyds and Morgan Stanley


Broader market developments on Wednesday

** EU risk assets rebound with financials leading the charge following Tuesday's risk-off price action, although FTSE100 bucks the rising trend on the back of a stronger GBP

** Gilt and Bund yields edge higher amid a risk on tone in equities. 10yr Gilt yield climbs 5bps from Tuesday's 6-month low of 0.998%. Peripheral bonds outperform, ditto for French OATs ahead of the first round French Presidential election vote this Sunday, for which uncertainty continues to loom

** Brent stabilises close to flat having declined the previous two days

** iTraxx indices tighten, Main touches fresh tight for the week at 75.973


Market snapshot (15.55 BST)

SXXP +0.27% / SX7P +1.1%

GBP/EUR -0.07% at 1.1959 / GBP/USD -0.23% at 1.2811

GER 2yr +5.8bps at -0.820% / 10yr +5.1bps at 0.203%

Brent -0.26% at USD54.75

iTraxx Main -1.3 at 76.1 / Crossover -4.0 at 296.6


What to watch Thursday

** Data: There is no top tier data out in Europe, although for the record Germany reports March PPI and the Eurozone Advance Consumer Confidence. Across the pond, watching US Jobless Claims, Philly Fed Business Outlook and Leading index

** Events: There are just two central bank speakers scheduled on the day in the shape of BoE's Carney and Fed's Powell

** Supply: France plans to sell EUR4.5-5.5bn 2020 and 2022 OATs and EUR0.75-1.25bn 2021-2047 OAT Linkers, while Spain has EUR4.5-5.5bn 2022-2046 SPGBs up for auction. UK aims to raise GBP2.75bn via 2022 Gilts and across the pond the US sells USD16bn 5yr TIPs

** Earnings: 12 Stoxx600 companies report and 21 S&P500 companies including Bank of New York Mellon Corp


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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