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** EUR4.25bn was issued in the IG primary market on Thursday, bringing total issuance from the holiday shortened week up to EUR10.75bn (6 deals) so far, which is set to fall short of the EUR14.65bn which printed last week. See the IGM DAILY EUR NICs & BOOKS for full details of all the deals to price on Thursday

** A day after Banco de Sabadell re-opened the EUR covered market, Banco Santander Totta printed a covered issue of its own with the borrower's EUR1bn Apr 2024 Obrigacoes Hipotecarias (OH) marking the first Portuguese covered bond in almost two years. The trade attracted a modest booksize of EUR1.3bn+ which was sufficient for pricing to be tightened into a reoffer spread of m/s +62 from a +high 60s IPTs starting point. See IGM's COVERED SNAPSHOT

** In FIG, Bank of America Merrill Lynch was the sole visitor to the single currency with an equally weighted EUR3bn 6NC5 floating rate and 10NC9 fixed-to-floating rate two-part issue which commanded combined demand in excess of EUR5bn. For more on this and details of a USD300m Green bond from QBE Insurance see IGM FIG SNAPSHOT

** Corporate borrowers again stayed side-lined meaning that the asset class has been without a new deal since Beijing Enterprises printed a EUR800m Apr 2022 line on 12th April. For a look at next week's potential corp supply prospects and our secondary market performance tracker of recent deals see IGM's CORP SNAPSHOT

Broader market developments on Thursday

** EU risk assets eke out mild gains buoyed by few earnings beats, in absence of any top tier data in Europe or US

** Govvies - bears were back in the driving seat following a recent bull run, pushing most EGB yields higher although OATs rebounded in the afternoon after a chunky EUR5.5bn was allotted via 2020 and 2022 OAT sales

** Brent stabilises after dropping a cumulative 5.37% over the past three days

** iTraxx indices post fresh tights for the week, Main touches an almost two-week low

Market snapshot (14.53 BST)

SXXP +0.09% / SX7P +0.79%

GER 2yr +1.6bps at -0.804% / 10yr +4.0bps at 0.239%

Brent -0.13% at USD52.86

iTraxx Main -0.9 at 74.9 / Crossover -3.2 at 292.6

Source: Bloomberg

What to watch Friday

** Data: Eurozone reports April flash Manufacturing and Services PMIs with expectations for both biased to the downside. Elsewhere, UK March Retail Sales are seen heading south, estimated at -0.5% MoM from +1.4% previously. Across the pond, US Mfg and Services PMIs are seen picking up in April, highlighting the ongoing economic divergence between the US and the Eurozone. Also watching US Existing Home Sales

** Events: Central bank speakers are limited to BoE's Saunders and Fed's Kashkari

** Supply: There are no significant term auctions scheduled in Europe or US on Friday 21st April

** Earnings: 5 Stoxx600 and 9 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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