Primary market highlights Friday
** Payroll Friday was a day of rest in the European primary market where just EUR250m priced courtesy of an unrated corporate. See DAILY EUR NICS & BOOKS
** That nudged up volume for the week in the single currency to EUR22.22bn, a slight dip from the EUR23.075bn seen the week prior. The 10yr+ bucket remained favoured for a third straight week. See WEEKLY VOLUME
** There was room for one more corporate issuer to grace the screens on Friday as unrated Finnish issuer Konecranes took EUR250m out of the market with a 5yr deal at m/s +165bps on ~EUR800m of demand. This takes total corporate supply to EUR7.3bn from 14 separate tranches in a week dominated by unrated, higher yielding sub-benchmark deals from rare or first time borrowers. For more details and some analysis of this week's well received supply see IGM CORP SNAPSHOT
** FIG rounded off the week with a blank but weekly volume at EUR5.2bn was more than double the previous week. Recent issues were performing well. including Thursday's very well received AT1 from CaixaBank, suggesting that investors continue to seek out yield. See IGM FIG SNAPSHOT
** Covered supply eased to EUR3.25bn in the week from EUR4.75bn. For some observations of this week's issuance including average NICs and booksizes, see IGM COVERED SNAPSHOT
** Data from EPFR Global for Euro-denominated IG bond funds showed that investors withdrew money for the first time in nineteen weeks. Withdrawals were modest though while flows into HY funds continued, suggesting the reach for yield continues. See EPFR FUND FLOWS
IGM Credit Excel spreadsheets
** 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 extend Thursday's rally, before paring gains as US NFPs come in weaker than expected (at 138k, exp 182k, prev revised lower to 174k from 211k). Price action sees DAX hit a fresh record high despite weaker oil
** Fed rate hike probability in June now stands at 87.6%, down from 92.7% before the US NFP data
** Brent drops below USD49 for the first time since 10th May, down over 3.3% at worst before paring worst losses. Prices still on course to decline on the week
** Govvies - 10yr Bund yield hits lowest level since 21st April. Core outperforms periphery, PGBs form the weakest link
** iTraxx indices tighten, Crossover posts fresh series tight
Market snapshot (15.22 BST)
SXXP +0.05% / SX7P +0.14%
GER 2yr -0.8bp at -0.733% / 10yr -2.9bps at 0.273%
Brent -1.76% at USD49.74, wiping out Thursday's 0.64% gain
iTraxx Main -0.3 at 62.2 / Crossover -0.9 at 249.9
What to watch Monday
** Data: Focus on UK Markit/CIPs Services PMI, seen softer in May. Across the pond, watching US ISM Non-Mfg PMI, Markit Services PMI, Factory Orders, JOLTs and Final Durable Goods Orders
** Events: None scheduled
** Supply: There are no significant term auctions scheduled in Europe or US on Monday 5th June
** Viewpoint: Week Ahead - ECB meeting to reveal guidance to the change in guidance? UK election, Former FBI Director testifies on Capitol Hill while FOMC purgatory begins.
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