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Thursday's primary market developments

** It was another relatively measured primary market session on Thursday where further EUR5.65bn of issuance priced in the single currency, although it felt a lot busier given that the total was made up of 12 separate tranches which included a number of sub-benchmark deals and taps. This takes the weekly total up to EUR21.75bn in the shortened UK bank holiday week. For a breakdown of Thursday's issuance see DAILY EUR NICS & BOOKS

** The primary corporate market continued to tick over on Thursday as another four issuers added EUR1.65bn to the EUR4.7bn which hit the screens in the first two days of the UK bank holiday week. For relative value analysis and some observations gleaned from this week's issuance see IGM CORP SNAPSHOT

** FIG issuers wasted little time before getting funding plans underway in the new month where both senior and AT1 supply was on the menu Thursday spanning a trio of currencies courtesy of RBS, CaixaBank, Bank of Nova Scotia and UBS. Meanwhile, spreads of recently launched Euro denominated transactions in our snapshot were generally tighter compared to the previous day. For commentary and analysis on Thursday's deals and more detailed performance review see IGM FIG SNAPSHOT

** SSA supply totalled EUR2.4bn but was limited to 2 benchmark sized transactions in the shape of a EUR550m Jun 2022 line from Chexim which priced at m/s +60 (from +75a IPTs) and made up part of a dual-tranche exercise which also included a US$ 3yr FRN .Elsewhere, Bremen targeted the short-end of the curve with a EUR500m Jun 2019 LSA at m/s +29 (in line with +29a guidance), with the rest of the day's activity limited to taps of outstanding issues


Friday's supply prospects

** There was no confirmed issuance on the docket for Friday at the time of writing



Thursday's broader market developments

** EU risk assets eke out mild gains on the first trading day of the month as oil recovers, while Italy's FTSEMIB outperforms peers on Italian Final Q4 GDP beat. Stoxx600 on course to end a 5-day losing streak

** Brent on track to close Thursday's session higher, following two consecutive days of declines although that still leaves prices on course to decline on the week. For our strategy team's views on recent developments see Viewpoint: Oil - Some Charts to Consider

** Govvies - Recent safe haven bid fades amid risk on in equities. 3-15yr Gilt curve bear steepens, BTPs lead decline in 10yr EGBs after better-than-expected Italian final Q4 GDP

** iTraxx indices traded mixed. Crossover respects Wednesday's range, while Main tops Wednesday's wide

Market snapshot (14.51 BST)

SXXP +0.35% / SX7P -0.16%

GER 2yr +1.2bps at -0.721% / 10yr +1.6bps at 0.316%

Brent +0.62% at USD50.62

iTraxx Main +0.1 at 62.7 / Crossover -2.2 at 251.9


What to watch Friday

** Data: Eurozone PPI is expected to indicate that inflationary pressures remain firmly in place at the factory gate with the YoY rate seen picking up to 4.5% in April from 3.9% previously. Other 2nd tier European releases include Spanish Unemployment and UK Markit/CIPS Construction PMI, but the key highlight of the day will be the US labour report and in particular Non-farm payrolls (est +180k, prev 211k). US also reports April trade figures

** Events: Watching Fed's Harker (17.45) and Kaplan (18.00)

** Supply: There is no significant term supply scheduled in Europe or US on Friday 02nd June


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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