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Tuesday's primary market highlights

** It was a measured start to the week in the EUR primary market where only EUR750m of issuance priced in the single currency from just two deals following the long weekend in Europe. See the IGM DAILY NICS & BOOKS for the pricing steps of those trades

** What supply did emerge catered for more risk averse investors. That was mainly thanks to a EUR500m May 2027 Hypothekenpfandbrief from Muenchener Hypothekenbank eG (MunHyp). For more details including comps & relative value analysis see IGM COVERED SNAPSHOT

** The other EUR250m was priced by Nederlandse Waterschapsbank N.V in the form of a tap of its outstanding 0.75% Oct 2041 issue, bringing the new total issue size to EUR1.125bn

** The corporate spotlight was on dollars where Nestle Holdings sold a USD300m 5yr Eurodollar exercise at m/s +33bps, offering a NIC of ca. 5bps in the process. For more detailed RV analysis as well as an overview of the current EUR corporate pipeline see IGM CORP SNAPSHOT

** The FIG (ex-covered) space was devoid of supply on Tuesday although there is plenty of room for optimism, as a tightening of secondary spreads amid a supportive broader risk tone saw more issuers announce their near-term funding plans. For details of the growing pipeline see IGM FIG SNAPSHOT

** The ECB released its latest CSPP update on Tuesday, a day later than usual due to the long weekend in Europe. The central bank revealed it held EUR82.262bn of corporate securities as of 21st April with the latest data points to an implied daily purchase rate of EUR244m which marks the second slowest rate year-to-date. See IGM' ECB CSPP REVIEW

IGM European Credit Weekly

** The IGM European Weekly Credit Excel Spreadsheet is your comprehensive round-up of primary European new issue activity in Excel format, which allows users to conveniently download, save and edit the data as required. As well as new issue terms and conditions the spreadsheet incorporates additional data sets including distribution stats, book sizes, NICs and secondary market performance

IGM/EPFR Weekly Cheat Sheet in Excel

** The IGM/EPFR Weekly Cheat Sheet provides proprietary intelligence on Euro primary market trends using various key data points in an easily digestible Excel spreadsheet. This includes Euro new issue volumes, average new issue concessions and book cover ratios across asset classes, as well as EPFR fund flow data and other key credit proxies

Wednesday's potential primary supply

** German State of Saarland (AAA by Fitch) has hired BayernLB, LBBW and Nord/LB to lead manage a EUR250mn no grow 15yr Landesschatzanweisung issue

** Kommunalbanken Norway (KBN), rated Aaa/AAA and 100% owned by the Kingdom of Norway, is taking IoIs for a min USD300m tap of its Jun 2020 floater at 3mL +6 area IPTs via Barclays, Daiwa and TD

** The European Investment Bank (EIB), rated Aaa/AAA/AAA has mandated Deutsche Bank, HSBC and TD for a GBP250m no grow tap of its outstanding 0.625% Jan 2020 issue. The issuer is taking IoIs at gilts +36 area IPTs

Broader market developments on Tuesday

** EU risk assets remained buoyant as cash went to work at start of new month

** Eurozone Apr final mfg PMI was downgraded one tenth from the flash to 56.7 while UK equivalent jumped to 3-yr high of 57.3 from 54.2

** iTraxx Main and Crossover both touch fresh series tights - path of least resistance still tighter

** Stoxx600 touches fresh 17-m high in broad based advance

** Govvies - bunds showed resilience despite risk-on tone and approach of Wednesday's 10yr Bund auction. Greece outperforms strongly on hopes reform deal will unlock bailout funds with 10yr GGB yield lowest since Sep 2014

Market snapshot (15.45 BST)

SXXP +0.64% / SX7P +0.63%

GER 2yr +0.5bps at -0.742% / 10yr +0.9bps at 0.322%

iTraxx Main -0.6 at 66.3 / Crossover -4.2 at 262.4

What to watch Wednesday

** Data: Spanish unemployment (Apr) is seen falling by fastest pace since Dec while the German equivalent is seen falling for a 7th straight month but at the slowest pace since Nov. GDP in the eurozone is seen firming by one tenth in Q1 to 0.5% QoQ. Then it's over to the US where ADP Employment should show that the pace of job creation slowed in April, and together with employment component of Non-mfg ISM, will be important benchmarks for Friday's employment report

** Events: The FOMC verdict is expected to be a non-event (no presser) with June seen as the next live meeting (70% probability of a hike via BB WIRP)

** Supply: The spotlight is on Germany where EUR3bn 10yr bunds are for sale

** Earnings: 26 Stoxx600 and 34 S&P500 companies report

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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