skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Thursday's primary market highlights

** The recent EUR supply glut continued of Thursday where a further EUR10.4bn was issued, bringing total IG issuance for the week up to EUR40.45bn. In contrast, the HY market was still waiting for its first deal of the week. For the full list of Thursday's EUR issues see the IGM DAILY EUR NICS & BOOKS

** In FIG, the focus was on the senior market where Santander UK Group Holdings and Mediobanca sold FRNs while JPMorgan Chase and Co sold a 11NC10 fixed. Issuers raised a total of EUR3.5bn but demand continued to outstrip supply where aggregated orders topped EUR8.6bn. Our tracker of recent deals indicated that French paper continued to outperform. See IGM FIG SNAPSHOT

** Westpac Banking Corporation hit the screens with a EUR1.5bn two-part Australian covered bond comprising EUR1bn 7yr and EUR500m 15yr lines which landed at m/s +7 and +17 respectively. See IGM COVERED SNAPSHOT for more

** JAB Holdings and PACCAR added a combined EUR2bn to the daily total via a EUR1.5bn 7/11yr two-part and a EUR500m 3yr respectively with total demand for the paper standing at over EUR7.1bn. This brings weekly EUR IG corp supply up to EUR12.4bn which marks the second busiest week for the asset class year to date. For more see IGM's CORP SNAPSHOT

** The SSA sector was represented by Rentenbank, Nordic Investment Bank (NIB), SNCF Reseau and Land NRW with the latter extending its EUR LSA curve with a long-dated EUR1bn 30yr line. For more on these, including relative value analysis see earlier IGM SSA PREVIEW


Broader market developments on Thursday

** EU risk assets were biased weaker following a defensive start to the day, while commodities received a boost with oil holding above USD50 thanks to Tuesday's API and Wed's EIA data unveiling another drawdown in crude inventories

** Sterling came under pressure, falling to a one-week low, as UK's BoE voted 7-1 to keep interest rates steady and 8-0 to maintain QE at GBP435n, both as expected. 2017 UK GDP estimate trimmed to 1.9% from 2% previously

** Data-wise � US PPI much stronger than expected at 0.5% MoM in April (exp 0.2%, prev -0.1%)

** Govvies - French, Italian and Spanish curves bear steepen, EGB yields get pushed broadly higher, 10yr Bund yield revisits mid-March level (session high 0.46%). 10yr PGB/Bund yield spread briefly hits a fresh YTD low

** iTraxx indices start tighter before making a u-turn. Price action saw Main touch a fresh series tight for 7th time out of the last 8 sessions

Market snapshot (14.55 BST)

SXXP -0.42% / SX7P -0.35%

GBP/USD -0.46% at 1.2878

GER 2yr +0.8bps at -0.671% / 10yr +1.9% at 0.436%

Brent +1.00% at USD50.72, on course for second straight day of gains

iTraxx Main +0.5 at 62.9 / Crossover +3.1 at 256.5


What to watch Friday

** Data: Germany releases preliminary GDP figures for Q1 (est 0.6%, prev 0.4%), while both Germany and Spain report final inflation numbers which should match the flash estimates. Also watching Eurozone Industrial Production which is seen rebounding in March. US highlights are Retail Sales, CPI and UoM Sentiment

** Events: Scheduled central bank speakers are limited to ECB's Lane (09.30), Fed's Evans (14.00) and Harker (17.30)

** Supply: there are no significant term auctions scheduled in Europe or US on Friday

** Earnings trickle down to just 13 Stoxx600 companies



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


Recommended Articles

  • IGM Credit, IGM FX and Rates

    The Context 10.19.20

    19 Oct 2020

    Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    China Insight: Bond market bearishness intensifies

    19 Oct 2020

    Recall, we delivered the below predictions respectively in two issues of this publication last month: - 11 September -- "Despite the downward pullback of the yield in recent days, we still stick with our cautiously bearish view on the bonds. We won't be surprised if the 10-year CGB yield finally reaches 3.25% or higher in Q4 if the prevailing mini-deleveraging cycle continues". - 18 September -- "In our view, continued reluctance of PBOC to act generously will reinforce the market perception that monetary easing cycle is already over and borrowing costs will be gradually creeping upward. In case of that, there is a good chance we will see a strong selloff in bonds in October". Basically, both predictions have already materialized as 10-year CGB yield already reached as high as 3.23%, fresh high of the year, in the middle of this month (October). That's 11bp higher than September 18's closing level...

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    The Context 10.12.20

    12 Oct 2020

    Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

;

Any questions? Speak to a specialist

Would you like to request sample data or analysis from Informa Financial Intelligence? 

See how our tailored solutions can help you gain a competitive advantage: