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Primary market developments

** Seasonal factors conspired to keep a lid on euro supply this week where a total of EUR23.075bn printed, down from EUR42.405bn the prior week. For the breakdown of the week's supply see IGM's WEEKLY VOLUME

** All the week's issuance came in the first three days of the week as a partial holiday in Europe on Thursday, a bridge day on Friday and approach of a long weekend in US and UK kept issuers side-lined in the latter stages of the week

** Kingdom of Belgium spearheaded SSA supply this week with a syndicated EUR3bn 20yr, which attracted the largest orderbook (EUR15.4bn+) and marked the largest sized Euro deal across all asset classes. The deal accounted for around 25% of the week's total SSA Euro issuance which stood at EUR8.55bn, down circa 52% from last week

** Corporate supply dropped sharply in the week to EUR5.6bn from a previous EUR15.45bn, headlined by deals from US issuers Becton, Dickinson and Company and Allergan Funding SCS. For more observations on the week's activity and market conditions see IGM CORP SNAPSHOT

** FIG supply dropped to EUR2.7bn for the week (from EUR6.4bn) but the light supply conditions proved supportive for spreads of recent deals. Friday saw CaixaBank tee up an AT1 deal for next week. See IGM FIG SNAPSHOT

** Covered bucked the trend with supply rising to EUR4.75bn (from EUR0.75bn). Rabobank launched its Euro covered debut while Banco Comercial Portugu�s ended an eight-year hiatus. For some observations of this week's issuance including average NICs and booksizes, see IGM's CORP SNAPSHOT

** Data from EPFR Global for Euro-denominated IG bond funds shows investors put money in for an eighteenth straight week although inflows slowed to an equivalent $943.01m from $1,013.24m last week and $1,810.14m the week before. See IGM's EPFR FUND FLOWS for more


** 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: 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


Friday's broader market developments

** EU risk assets were biased weaker into the weekend, driven initially by weaker energy stocks in low volume trade

** GBP/USD slumps to lowest level since 25th April following latest polls showing slip in UK Conservative lead over Labour. GBP/EUR also weakens, just a whisker away from taking out the 29th March low

** Govvies - EU risk off sentiment fuels bull flattening, peripherals outperform in 10yr space with PGBs leading the charge

** Brent partially rebounds having dropped more than 7% at worst from Thursday's session high

** iTraxx indices widen a day after both main and Crossover hit fresh tights for the week

Market snapshot (15.22 BST)

SXXP -0.17% / SX7P -0.54%

GBP/USD -1.10% at 1.2817

GER 2yr -1.5bps at -0.701% / 10yr -2.8bps at 0.330%

Brent +0.45% at USD51.69

iTraxx Main +0.17 at 61.8 / Crossover +1.5 at 251.5


What to watch Tuesday

Data: A busy European slate sees May Preliminary Spanish and German CPIs out for release, sentiment indicators in France and the Eurozone and French 2nd estimate GDP. In the US, watching PCE Core deflator MoM, Personal Income and Spending among other 2nd tier releases

** Events: Currently only two central bankers are scheduled to speak on the day in the shape of ECB's Liikanen (11.15) and Fed's Brainard (18.00)

** Supply: Italy has the supply stage to itself as it plans to raise EUR1.25-1.75bn via 2024 CCTeus and EUR4.75-5.75bn via 2022 and 2027 BTPs

** Earnings are extremely light with just 2 Stoxx600 companies due to report on the day

** Holidays: China is out for the Dragon Boat Festival Holiday on Tuesday, while UK and US markets return following closed markets on Monday

** VIEWPOINT: WEEK AHEAD The ECB is in focus in the lead up to the June 8's meeting with several speakers and flash CPI due. With the Dollar suffering a little from a lack of policy drive the Euro is in the spotlight. Peak oil demand season is close, but after the OPEC 'disappointment' it is difficult to see anything more than a slow drain on global inventories. In Fixed Income, the seasonal turning point is with us


Please note that due to the Bank Holiday in the UK on Monday this will be the last IGM Daily Close until Tuesday



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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