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Wednesday's primary markets highlights

** The European primary market saw EUR10.05bn of IG paper print on Wednesday, slightly down on the EUR10.25bn issued Tuesday. This means that EUR24.25bn has priced so far this week, easily beating last week's total of EUR11.75bn (IG). For the full list of Wednesday's deals see the IGM DAILY EUR NICS & BOOKS

** The Kingdom of Spain spearheaded issuance with a syndicated EUR5bn Nov 2027 linker which priced at SPGBs -96 having been revised from -92/-94 IPTs on the back of books in excess of EUR16.4bn. Elsewhere, Province of Quebec sold a 10yr line at m/s +14bps for a record EUR2.25bn, which is historically the borrower's largest ever issue size for a fixed rate Euro deal. For more on both of these and details of some Dollar supply from ADB, see IGM SSA PREVIEW

** The Euro corporate market reopened on Wednesday having lay dormant for two weeks. That was thanks to Brussels Airport Company SA/NV which made a rare visit to the Euro market with a new EUR300m 7yr line. Strong demand of over EUR2.1bn allowed the borrower to ramp pricing into a final m/s +65 from a +85 area IPTs starting point. See IGM's CORP SNAPSHOT for more

** EUR Covered supply remained on the menu courtesy of Swedbank Mortgage AB and Credit Agricole Home Loan SFH which brought a EUR1bn 7yr Swedish Covered Bond and a EUR1.5bn 10yr Obligations de Financement de l'Habitat respectively. Combined demand for the EUR2.5bn printed totalled more than EUR5bn. For more including relative value analysis see IGM's COVERED SNAPSHOT

** FIG supply slowed Wednesday but has already topped the weekly average seen YTD of EUR4.62bn after the first two sessions produced a total haul of EUR5.5bn (ex-covered). Supply looks set stay muted in the immediate future with Thursday's ECB meeting, earnings, approach of the holiday weekend and month-end all providing limiting factors. See FIG SNAPSHOT

Broader market developments on Wednesday

** EU risk assets struggle to make headway in either direction as markets fall fully into the shadow of Thursday's ECB policy meeting, and adopt wait and see stance ahead of expected details on major tax overhaul from US President Trump

** Govvies - BTPs lead decline in 10yr space ahead of Thursday's up to EUR8.75bn Italian bond auctions, although Bunds buck the trend, outperforming regional peers, on course to snap a 5-day declining run

** iTraxx indices widen, Main on course to end 5 consecutive days of tightening. but charts suggest scope for more tightening. See CHART WATCH

Market snapshot (15.13 BST)

SXXP +0.24% / SX7P +0.04%

GER 2yr -1.2bps at -0.708% / 10yr -0.9bps at 0.365%

Brent -1.02% at USD51.57

iTraxx Main +1.1 at 67.9 / Crossover +4.2 at 271.5

What to watch Thursday

** Data: Germany reports preliminary CPI figures with the headline YoY rate seen a tad stronger in April. States report first though starting with Saxony at 08.00 BST. Also watching sentiment indicators from Germany, Italy and the pan-Eurozone, while UK reports CBI Retail Sales. Across the pond, US Durable Goods orders and Pending Home Sales form the key highlights

** Events: The ECB unveils its latest policy announcement, although rates are seen unchanged, as is the QE programme. Also watching Riksbank Policy announcement, no change anticipated.

** Supply: Italy hopes to raise EUR3-3.5bn via 2024 CCTeus and EUR 4.25-5.25 via 2022 and 2027 BTPs before attention shifts to the US where USD28bn 7yr Notes will be up for grabs

** Earnings: 44 Stoxx600 and 66 S&P500 companies report. Former includes Nordea Bank, Deutsche Bank, Lloyds Banking Group and Bankinter. Some self-led supply could follow as they come out of the usual earnings related blackout period

** Holidays: Netherlands (King's Day)

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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