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Tuesday's primary market developments

** A fairly measured start to the primary market week after recent holidays in Europe and the UK, although it was by no means a washout as EUR4.45bn priced with all IG asset classes playing their part. For the composition of Tuesday's EUR supply see DAILY NICS & BOOKS

** While there was only one EUR corporate benchmark on the day courtesy of a EUR550m Jun 2022 LM driven exercise from Casino, there was no shortage of additional headlines as a host of other corporate issuers made their near-term funding plans known. For more details see IGM CORP SNAPSHOT

** The State of Berlin was the sole issuer in the EUR SSA market on the day, extending its curve with a EUR650m Jun 2037 LSA. For relative value analysis see IGM SSA PREVIEW

** Landesbank Baden-Wuerttemburg received around EUR1.8bn for its EUR1bn senior unsecured 5yr trade while U.S. Bancorp and CaixaBank were readying respective senior and AT1 deals. See IGM FIG SNAPSHOT


Wednesday's potential supply

** U.S. Bancorp (A1/A+/AA/AA) is slated to emerge with an expected 7yr SEC-registered senior benchmark as soon as Wednesday via Barclays, Citi, UBS and US Bancorp which follows fixed income meetings that kicked off on May 16th

** HSH Finanzfonds AoeR (AAA/AA1) 8yr fixed benchmark via Barclays, BayernLB, Commerzbank, and UniCredit

** NWB Bank (Aaa/AAA) RegS 7/15yr Euro denominated Affordable Housing Bond via Credit Agricole CIB, HSBC, Rabobank and SEB

** Asian Development Bank (ADB) is marketing a USD1bn (min) 4yr global via BAML, HSBC and Nomura at m/s +7 area IPTs, representing a NIC of circa 3-3.5bps. See here

** Metso Corporation (BBB) EUR300m 7yr RegS fixed via Citi, Danske Bank, Nordea and OP Corporate Bank

** Otto (GmbH & Co KG), 'Otto' (unrated) potential 7yr EUR sub-benchmark Eurobond via Commerzbank, Deutsche Bank and ING

** Prologis, Inc. (A3/A-), SEC registered, GBP-denominated, senior unsecured, 12-year benchmark via BofA Merrill Lynch, HSBC, and J.P. Morgan

** Henkel AG & Co. (A2/A) 3-year RegS USD Benchmark via BofA Merrill Lynch and Deutsche Bank

** CaixaBank kicked off investor meetings Tuesday for a euro denominated PNC5 or PNC7 AT1 benchmark transaction. For more detail and the official comps list see here.


Tuesday's broader market developments

** Mild EU risk off on approach to month-end and following mixed leads from Asia overnight, as the UK and US return from the holiday weekend. Financial stocks underperform

** Euro recovers against USD and GBP, following earlier drop aligned to weekend remarks from ECB Draghi highlighting the need for expansive monetary stimulus to restore inflation even as economic growth picks up

** Data-wise - Weaker than expected Spanish and German inflation points to downside risk for Wednesday's pan-Eurozone CPI. Eurozone sentiment indicators also miss

** Oil on course to wipe out Monday's small 0.27% gain amid broader commodity sell-off

** Govvies - 10-30s German and French curves bear steepen, albeit after the 10yr Bund yield hit its lowest level since 21st April early doors. BTPs form the weakest link, however, as 10yr yield hits two-week high as media reports suggest an early Italian election may be in the offing

** iTraxx indices follow broader negative tone in risk markets, both Main and Crossover widen, latter on course for second straight day of widening

Market Snapshot (15.11 BST)

SXXP -0.17% / SX7P -0.82%

GER 2yr +0.5bps at -0.726% / 10yr +0.2bps at 0.293%

Brent -1.91% at USD51.29

iTraxx Main +1.2 at 62.7 / Crossover +2.6 at 252.9


What to watch Wednesday

** Data: Watching Eurozone CPI with risk to the downside following weaker-than-expected Spanish and German prints Tuesday. Also watching Unemployment figures from Germany, Italy and the pan-Eurozone, as well as German Retail Sales. Meanwhile, the UK releases GfK Consumer Confidence, BRC Shop Prices and Mortgage Approvals. Across the pond, US Chicago PMI and Pending Home Sales provide the highlights in the absence of any top tier data

** Events: Watching ECB's Coeure (08.20), Visco (09.30) and Lautenschlaeger (13.30), as well as Fed's Kaplan (13.00) and the Fed Beige Book (19.00)

** Supply: There are no significant term auctions scheduled in Europe or US on Wednesday 31st May

** Earnings: 3 Stoxx600 and 3 S&P500 companies report


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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