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Tuesday's primary markets highlights

** Euro supply accelerated Tuesday where EUR10.25bn of IG supply priced in the single currency, with orders totalling EUR20bn+. That was up from the EUR4bn which printed Monday. See IGM DAILY NICS & BOOKS for a breakdown of the day's Euro deals and pricing steps

** That raised the weekly haul to EUR14.2bn, already topping the prior week's total of EUR11.75bn (IG). For a recap and observations on last week's Euro supply see WEEKLY VOLUME

** On the day, EFSF's EUR8bn 2-part (new 10yr/2043 tap) stole the show, attracting combined orders of EUR15.5bn+ for its largest ever dual tranche issue. See earlier SSA preview for relative value analysis

** In FIG, Credit Agricole found markets receptive for its EUR1.5bn 10yr senior trade which narrowed 13bps during execution to price at m/s +67, representing a NIC of around 7bps, after demand reached ~EUR3.9bn. See FIG SNAPSHOT

** Covered saw one Euro deal as Unicredit Bank AG priced its first covered bond of the year but demand for the EUR750m deal was underwhelming at EUR600m+ according to the last update. See COVERED SNAPSHOT

** Corps drew another blank in the single currency, extending the recent lean spell, although the sterling sector showed more signs of life as Thames Water Utilities Cayman Finance Ltd launched a dual tranche secured deal and GKN Holdings teed up roadshows (from 2nd May) for a 12-15yr benchmark. See CORP SNAPSHOT

** Despite the positive risk tone, near term Euro supply away from the SSA sector is expected to remain limited due to a combo of earnings related blackout and approach of the holiday weekend (Europe and UK)

Wednesday's supply prospects

** The Kingdom of Spain (Baa2/BBB+/BBB+/AL) is readying a new syndicated EUR Nov 2027 government bond linked to European Harmonised Index Consumer Price HICP (ex tobacco). BNP Paribas, CaixaBank, Citi, HSBC, Morgan Stanley and SG CIB are leads on the deal whilst all remaining primary dealers in the Kingdom of Spain government bond market will be invited into the syndicate

** Asian Development Bank (ADB) rated Aaa/AAA/AAA, is taking IoIs for a USD 3yr Global at m/s -4 area IPTs via BMO, Citi, Deutsche Bank and RBC

** Province of Quebec (Aa2/A+/AA-) has hired BNP Paribas, HSBC, ING, and NatWest Markets as joint lead managers for a new 10yr EUR benchmark

** Coventry Building Society (A2/A) is preparing to launch a 3yr GBP senior issue via Barclays, BNP Paribas, Lloyds Bank, NatWest Markets and Santander

Broader market developments on Tuesday - safety out of fashion, no sign of chipping away at the rally -- yet

** Risk tone stays buoyant with thoughts also on President Trump's tax reform plans and earnings

** New 16-m high for Stoxx600 with banks holding onto the monster gains seen Monday

** iTraxx indices touch fresh series tights

** Bunds slide again, 10yr yield up as much as 13.5bps from Friday's close while Schatz auction fails for a second straight month

** Gold slides for 2nd day, JPY sags

Market snapshot (15.55 BST)

SXXP +0.2% / SX7P +0.44%

OAT 2yr +3.7bps at -0.438% / 10yr +7.4bps at 0.893%

GER 2yr +1.4bps at -0.697% / 10yr +5.5bps at 0.380%

EUR/USD +0.53% at 1.0925

Brent -0.29% at USD51.45

iTraxx Main -1.6 at 66.6 / Crossover -6.4 at 266.9

What to watch Wednesday

** Data: There are no top tier releases out in Europe or US on Wednesday 26th April, although for the record France reports Consumer Confidence, seen steady at 100 in April

** Events: There are no events scheduled in the run up to Thursday's ECB policy meeting

** Supply: UK sells GBP800m 2046 Gilt Linkers and Finland up to EUR1.5bn 2022 and 2047 bonds. Across the pond, the US hopes to raise USD15bn via 2yr FRNs and USD34bn via 5yr Notes

** Earnings: 27 Stoxx600 companies report including Banco Santander, Credit Suisse and Deutsche Boerse, while across the pond there are 50 S&P500 companies due to report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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