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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


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