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Wednesday's primary market developments

** Issuers rushed to lock in funding on the final day of May and also before payrolls on Friday and the ECB next week. EUR11.85bn was issued in total, up sharply from the EUR4.45bn sold Tuesday. See DAILY EUR NICS & BOOKS

** The corporate market spearheaded activity on Wednesday where no less than 10 separate issuers spanning the credit spectrum went head-to-head across a range of currencies and maturities. For new issue details see the priced deals table here or the IGM CORP SNAPSHOT for commentary including relative value analysis

** In FIG, BNP Paribas extended its senior non-preferred FRN curve with a new 7yr and U.S. Bancorp launched a debut senior bond with both deals seeing a solid reception. See IGM FIG SNAPHOT

** Covered saw Intesa Sanpaolo sell the first Italian covered bond since March. The EUR1bn 10yr OBG saw tepid demand though (EUR1bn+) while Tuesday's deals were all softer. See IGM COVERED SNAPSHOT

** SSA Euro supply was spearheaded by NWB Bank with a dual tranche EUR1.5bn 7yr and EUR500m 15yr Affordable Housing Bond, which saw demand skewed toward the 7yr despite the final spread being tightened 4bps from IPTs, outlining a final NIC of circa 1.5bps. Also in Euros, HSH Finanzfonds extended its fixed rate benchmark curve with a EUR750m 8yr exercise, while KfW increased the size of its existing 06/2024s by EUR1bn

Thursday's potential supply

** CaixaBank wrapped up roadshows on Wednesday for a EUR benchmark AT1 (PNC5 or PNC7) via Barclays and SG CIB as Structuring Advisors and Joint Lead Managers, and CaixaBank, J.P. Morgan and Morgan Stanley

** The Free Hanseatic City of Bremen (AAA) EUR 500mn (no grow) 2yr RegS Landesschatzanweisung via DekaBank and Goldman Sachs International

** CDC (Aa2/AA/AA) 3yr senior sterling benchmark via Barclays, Natixis and RBC. IPTs: UKT (4.75% Mar-2020) +low-mid 50s. To price Thursday

** Met Tokyo USD 5-year senior unsecured RegS/144a fixed rate at m/s +72 area IPTs via Barclays, BofA Merrill Lynch, Citigroup and Nomura

** State of Lower Saxony (AAA) tap of the 10 January 2022 LSA via Dekabank, HSBC, J.P.Morgan, LBBW and Nord/LB

** Kommunekredit (Aaa/AAA) 3yr RegS USD fixed, IPTs m/s +5bp area via BNP Paribas. GSI, J.P.Morgan and Nomura

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

Wednesday's broader market developments

** EU risk assets gained positive momentum in the first half of the session but then fell back as Wall Street opened lower, while Sterling weakness pushed FTSE100 to a new record high

** Data-wise - Weaker-than-expected Eurozone inflation data supports speculation of ongoing expansive ECB monetary policy, after April's firmer CPI data had sparked QE taper concerns

** Brent extends Tuesday's decline in the run up to Wednesday's EIA crude inventory data, hitting a three-week low in the process

** Govvies - 10yr OATs outperform despite looming supply (see OAT/Bund spread chart), PGBs lead broad rally in EGBs, tightening the spread vs Bunds to a more than 1-week low. 10yr Gilts underperform, however, ahead of Thursday's GBP2.5bn 10yr Gilt auction

** iTraxx indices start tighter before making a u-turn and decoupling from the broader risk on tone in equity markets

Market Snapshot (15.06 BST)

SXXP +0.31% / SX7P +0.01%

GBP/EUR -0.40% at 1.1449

GER 2yr -0.2bp at 0.730% / 10yr -0.3bp at 0.286%

Brent -3.22% at USD50.17

iTraxx Main +0.08 at 62.6 / Crossover +0.9 at 253.9

What to watch Thursday

** Data: It's May final Mfg PMI day in Europe, while peripherals report for the first time. Italian final Q1 GDP is expected to match the flash est at a steady 0.2% QoQ. UK releases May Nationwide House Prices. Across the pond, watching ADP Employment Change ahead of Fri's NFPs, while the ISM Mfg index is seen softer

** Events: ECB's Villeroy (08.15), Costa (10.00), Fed's Williams (01.10) and Powell (13.00) are the only central bank speakers scheduled on the day. Brussels holds annual Economic Forum

** Supply: Spain to sell EUR3.5-4.5bn 2021 and 2066 bonds, as well as EUR250-750m 2030 Linkers. France aims to raise EUR7.5-8.5bn via 2027, 2032 and 2039 OATs, while the UK has GBP2.5bn 2027 Gilts up for grabs

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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