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Thursday's primary market highlights

** Euro supply totalled just EUR750m on Thursday, bringing the weekly issuance volume up to just EUR5.55bn, meaning we are on course for the slowest week of the year so far for the primary market with the week-ending 21st April currently holding that unwanted accolade (EUR12.4bn printed)

** Just one benchmark deal printed in the single currency Thursday in the form of a EUR500m 5yr floating rate note from Daimler International Finance B.V. The trade landed at 3mE +28 from a 3mE +35 area IPTs starting point on the back of final demand of EUR900m, which resulted in an economic exercise for the borrower with the final NIC at just 1bp. See IGM CORP SNAPSHOT

** The only other EUR paper on the day came courtesy of Federal State of Lower Saxony which tapped its 0% Mar 2021 LSA issue by EUR250m at m/s -26, bringing the new outstanding size to EUR1bn

** In FIG, issuers stayed on the side-lines Thursday despite the positive tone in underlying risk markets that helped push European bank stocks to a fresh 17-month high. Wednesday's 6yr senior for Criteria Caixa was bid 5bps inside reoffer while higher beta peripheral paper continued to outperform ahead of an AT1 for Banco de Sabadell that could come as early as Friday. See IGM's FIG SNAPSHOT

** Covered supply was also off the menu although there was an addition to the new issue pipeline where Sparebanken S�r Boligkreditt hired banks for an investor roadshow ahead of a potential EUR500m no grow medium-term issue. For more details on this as well as a look at other names in the pipeline, see IGM COVERED SNAPSHOT

Friday's primary prospects

** After the conclusion on an investor roadshow on Thursday, Banco de Sabadell could pull the trigger on a EUR perp non-call 5yr AT1 issue via Banco de Sabadell, Deutsche Bank, Goldman Sachs International, HSBC, J.P. Morgan, and UBS Investment Bank

Broader market developments on Thursday

** European risk assets hold onto gains going into the close with sentiment lifted by latest polls for the French Presidential election which puts Macron ahead of Le Pen, in the run up to Sunday's run-off vote, after Wednesday night's TV debate

** Data also supports risk sentiment - Eurozone Services PMI gets upgraded, UK version beats. Eurozone Retail Sales also better than expected. Across the pond, US Jobless Claims were lower than expected at 238k (exp248k). US Trade deficit also narrower than expected

** Govvies � German curve bear steepens, follows negative handover from USTs overnight. Periphery outperforms core, PGBs lead the way, narrowing the 10yr spread vs Bunds to a fresh YTD low

** iTraxx indices tighten, both Main and Crossover hit fresh series tights with scope for further extension on Main (see Chart Watch)

Market snapshot (15.50 BST)

SXXP +0.44% / SX7P +1.24%

GER 2yr +1.1bps at -0.725% / 10yr +6.4bps at 0.385%

Brent -2.54% at USD49.50

iTraxx Main -0.9 at 64.5 / Crossover -1.7 at 257.9

What to watch Friday

** Data: Spain reports Industrial Production figures with the MoM rate seen rebounding in March to 0.3% from -0.2% previously, before attention turns to the highlight of the day in the shape of US Non-Farm Payrolls (est +190k, prev 98k)

** Events: There is no shortage of Fed central bank speakers on the day where the line-up consist of Fed's Fischer (16.30), Williams (17.45), Rosengran/Evans/Bullard (18.30) and Yellen (18.30)

** Supply: There are no significant term auctions scheduled in Europe or US on Friday 5th May

** Earning reports slow to just 15 Stoxx600 (incl Banco Popular Espanol and Erste Group Bank) and 6 S&P500 companies

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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