skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

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


Recommended Articles

  • IGM Credit, IGM FX and Rates

    The Context 02.18.20

    18 Feb 2020

    Inside this week’s edition of The Context, Financial Intelligence thought leaders discuss: The JPY Week - Bias is Bearish Has the impact of coronavirus now peaked? We say such talk is premature and an underlying bid Usd/Jpy will continue to slow into 110.00-plus. Euro FIG Snapshot: Virus Protection Fully Operational With the recovery in risk assets extending into a second week, more issuers emerging from blackout and the credit market's virus protection evidently up to date, the pace picked up in the non-covered primary FIG market last week. Equities Ignore, Hope … Euro Indicates Slowing EMU Economy It doesn’t take much to light a fire under equities, but it is going to take much more to push bond yields higher... Read more from The Context and subscribe to have it delivered to your inbox each week!

    Topics Industry News

  • IGM Credit, IGM FX and Rates

    China Insight: Credit Bonds Will Play Catch up on More Supportive Measures

    By Tim Cheung 18 Feb 2020

    The authorities, MOF, PBOC and CBIRC, hosted a joint conference on Feb 7 to provide an update on supportive policies in light of the coronavirus situation. We believe the conference delivered a loosening bias tone as a nimble response to the virus outbreak. Next move following the huge liquidity injection and provision of first batch of special relending funds to more than a dozen of banks is going to be an LPR cut on 20 Feb. We expect a 10bp cut in both 1-year and 5-year LPRs on 20 Feb (chart 1), similar to the magnitude of the latest OMO rate cut. A more sizable cut may mean the policymakers are opting for more aggressive monetary easing to cushion the economic shocks arising from the coronavirus outbreak.      

    Topics Industry News

  • IGM Credit

    China Insight: Credit bonds will play a catch up on more supporting measures

    13 Feb 2020

    China Insight: Credit bonds will play a catch up on more supporting measures

;

Any questions? Speak to a specialist

Would you like to request sample data or analysis from Informa Financial Intelligence? 

See how our tailored solutions can help you gain a competitive advantage: