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Thursday's primary market highlights

** Euro IG/high yield supply slowed to EUR1.31bn on Thursday, down from the EUR11.975bn seen Wednesday. That came as Thursday's ECB meeting, approach of a long weekend/month-end and continuation of earnings season helped to limit supply while risk markets chipped away a little at recent gains. See IGM DAILY EUR NICS & BOOKS

** That lifted weekly Euro denominated supply to EUR27.535bn (IG+HY), putting the Euro primary market on course for its busiest week since w/e 24th March

** SSAs are the undisputed stars of this week, so far accounting for EUR15.55bn, or 62.58% of the week's EUR24.85bn IG supply, (all sectors) largely thanks to this week's record setting EFSF deal and Kingdom of Spain's linker

** A confluence of the aforementioned factors helped keep the lid down on fresh FIG supply although the pricing of a EUR250m retail targeted sub for Wiener Stadtische Versicherung AG took the week's Euro denominated supply to EUR5.75bn (ex-covered), easily topping the prior week's haul of EUR3.75bn. That also tops the average weekly volume YTD of EUR4.64bn. Secondary spreads showed additional selective tightening. See IGM's FIG SNAPSHOT

** With EUR issuance subdued on Thursday, the Sterling market took centre stage where at least GBP1.75bn printed (note this doesn't include the size of Martlet Homes May 2052 line which was not sized at the time of writing) . For the full breakdown of Thursday's GBP deals see IGM's DAILY GBP NICS & BOOKS

** Procter & Gamble returned to the Sterling corporate market for the first time in nearly 15yrs with an equally weighted GBP750m 8/12yr two-part issue. Demand for the issue was strong, with books closing at over GBP2.6bn. See IGM's CORP SNAPSHOT for more

** Santander UK plc provided the only covered supply on the day where the issuer printed a GBP1bn 3yr UK Regulated floating rate bond which landed at 3mL +27 on the back of books in excess of GBP1.6bn. For more on this and a broader look at the covered market see IGM COVERED SNAPSHOT

** Thursday also saw some USD paper print thanks to the Province of Manitoba which raised USD1bn at the 5yr part of the Global curve at m/s +26, having tightened pricing from +28 area IPTs on the back of demand over USD1.75bn. See IGM SSA PREVIEW

Broader market developments on Thursday

** Risk off in EU equities remained the theme of the day after US President Trump disappointed with a lack of details on his tax reform plan on Weds. The ECB kept interest rates on hold, as expected, although Pres Draghi surprised markets with his dovish/semi-dovish tone

** ECB's Draghi cited still subdued inflation while leaving the door open for QE to be expanded and/or extended if the outlook were to worsen but at the same time noted diminished downside risks to growth

** The ECB announcement follows the Riksbank's unexpected move earlier in the day to extend its government bond purchases by SEK15bn

** In the govvie space, that ultimately put bulls back in the driving seat with EGB yields heading south and OATs leading the way in the 10yr space in the run up to month-end and the long holiday weekend

** iTraxx indices start wider before making a u-turn, although both Main and Crossover still respect Wednesday's tights, former only just

Market snapshot (14.48 BST)

SXXP -0.23% / SX7P -0.50%

EUR/USD -0.12% at 1.0862 / EUR/GBP -0.52% at 0.84316

GER 2yr -1.9bps at -0.731% / 10yr -3.1bp at 0.317%

Brent -2.05% at USD50.76

iTraxx Main -0.5 at 66.9 / Crossover -1.0 at 269.6

What to watch Friday

** Data: There's no shortage of top tier releases out in Europe with preliminary Q1 GDP (from France, Spain and the UK) and inflation figures for April (from France, Italy and the Eurozone) set to top the agenda. Also watching Retail Sales figures from Germany and Spain, while Eurozone reports M3 Money Supply. Across the pond, all eyes will be on US preliminary growth figures for Q1 (est 1.0% QoQ, prev 2.1%)

** Events: Watching ECB Survey of Professional Forecasters (09.00 BST), while Fed's Brainard (18.15) and Harker (19.30) are both penciled in to speak, albeit after EU hours. It's also moth-end.

** Supply: There is no significant term supply scheduled on Friday 28th April

** Earnings: 24 Stoxx600 and 18 S&P500 companies report. Former includes UBS Group, Barclays, Banco de Sabadell, Royal Bank of Scotland, Danske Bank, CaixaBank and Bankia. Some self-led supply could follow

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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