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Tuesday's primary market highlights

** It was another busy session for the European primary markets on Tuesday as issuers continued to front load for the week ahead of the Ascension Day holiday Thursday and long weekends in the UK & US. Tuesday's EUR issuance totalled EUR10.15bn courtesy of 13 separate tranches and more details on all of these can be found in the IGM DAILY EUR NICS & BOOKS

** Tuesday's issuance was led by Kingdom of Belgium which refreshed its OLO curve with a new EUR3bn 20yr line which landed at m/s +8 from a +low teens IPTs starting point on the back of demand in excess of EUR15.4bn. Elsewhere in the single currency there was EUR500m 6/10yr Green deals from FMO/Kommunekredit as well as Dollar supply from KfW which printed a USD5bn 3yr Global. For more see earlier IGM SSA PREVIEW

** The EUR corporate market had an American feel on Tuesday where US pharmaceutical giant Allergan plc printed a EUR2.7bn 4-part trade as part of a liability management exercise whilst US global medical technology company Becton, Dickinson and Co raised EUR700m via a 2yr deal to complete funding for its Bard acquisition. For more see IGM's CORP SNAPSHOT

** In FIG, two further borrowers took advantage of the pre-holiday window and relatively receptive conditions. That saw Credit Mutuel Arkea price a EUR500mn (no-grow) 7yr inaugural SNP fixed at m/s +88 (from +105 area IPTs) on demand of EUR1.8bn+ representing a NIC of circa 3bps while Jyske Bank A/S priced a EUR500m 3yr senior FRN at 3mE+35 (from +40 area IPTs) on books of EUR1.9bn+ (pre-rec). For more see IGM FIG SNAPSHOT

** Societe Generale SFH and Banco Comercial Portugues brought respective EUR750m Jun-2025 Obligations de Financement de l'Habitat and EUR1bn May-2022 Obriga��es Hipotec�rias covered deals which elevates total supply for the asset class up to EUR4.75bn for the week, which already exceeds the EUR750m which was raised in the whole of last week. For more on Tuesday's duo of bonds, see the IGM COVERED SNAPSHOT


Wednesday's potential primary issuance

** Dexia CL (Aa3/AA/AA-) is taking IoIs for a EUR 5yr line at m/s +13 area IPTs via Citi, HSBC, Natixis, NatWest Markets and SG CIB. See IGM PREVIEW

** NWB.Bank (Aaa/AAA) has hired BAML, Commerzbank and DZ Bank to lead manage a tap of its outstanding 0.75% Oct 2041 line

** JBIC (A1/A+) is working a USD multi-tranche offering via Nomura, BAML, Goldman Sachs and Mizuho as follows: 3yr fixed &/or frn at m/s +53 area / L equiv, 5yr fixed at m/s +69 area and 10yr at m/s +47 area IPTs. Preview here

** Export Development Canada (EDC), rated Aaa/AAA, is working a USD500m no grow 3yr Green bond at m/s -1 area guidance via HSBC, JP Morgan and SEB. Preview here


Broader market developments on Tuesday

** EU risk assets start off on the back foot after the bombing in Manchester before bouncing back. Stronger than expected German IFO and French composite PMIs support turnaround in risk sentiment

** GBP declines against USD and EUR, dragging GBP/EUR to its lowest level since 29th March, down circa 0.5% at worst

** Brent erases chunk of AM losses, was on course to end the day little changed ahead of API data and Thursday's OPEC meeting

** Govvies - 10yr German/UK yield spread hits narrowest level in 9 months (session low 0.66bps) after stronger than expected German IFO indices, while UK PSNB and CBI Distributive Trades both missed expectations. Bunds, however, erase am losses going into the close

** iTraxx indices start wider then make a u-turn, both on track for 3rd straight day of tightening

Market snapshot (15.36 BST)

SXXP +0.25% / SX7P +0.65%

GER 2yr flat at -0.667% / 10yr

GBP/EUR -0.16% at 1.1565

Brent +0.06% at USD53.90

iTraxx Main -0.7 at 62.3 / Crossover -1.3 at 251.9


What to watch Wednesday

** Data: A light data agenda sees German GfK and Belgian Business Confidence out in Europe, while across the pond US reports housing data with Existing Home Sales the most noteworthy

** Events: Watching FOMC minutes of the May 2-3rd meeting and central bank speakers in the shape of ECB's Praet (09.30), Draghi (13.45) and Fed's Kaplan (23.00) and Kashkari (23.30)

** Supply: Germany plans to sell EUR3bn 2027 Bunds, while across the pond the US has USD13bn 2yr FRNS followed by USD34bn 5yr Notes up for grabs

**Earnings see 7 Stoxx600 and 7 S&P500 companies report


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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