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Tuesday's primary market highlights

** EUR primary issuance accelerated slightly on Tuesday where EUR5.15bn printed courtesy of 7 issuers compared to EUR3.3bn on Monday. For the full list of Tuesday's EUR deals and their pricing steps, see the IGM DAILY EUR NICS & BOOKS

** SSAs were the busiest with four issuers tapping the single currency for a combined EUR3.45bn, spearheaded by a EUR2bn 7yr from CPPIB Capital Inc, whilst KBN and IADB hit the Dollar market. In terms of the day's EUR deals, CPPIB found favour with investors where demand for its deal reached over EUR3.1bn, whilst Unedic's EUR250m Mar 2026 tap and Hessen's EUR500m 7yr LSA appeared to find the going tougher with books last communicated at just EUR480m+ and EUR450m+ respectively. No booksize was communicated on Chile's SEC-registered May 2030 tap

** Fonciere des Regions printed the only the only corporate benchmark of the day seeing the issuer extend its benchmark curve with a EUR500m 10yr line that landed at m/s +85 from a +95/100 area IPTs starting point. Demand was far from a blowout at just EUR850m (1.7x covered). This after Monday's deals from TenneT and Hemso Fastighets AB also received a tepid investor response with the trades only 1.3x covered, significantly less than last week's average cover of 2.815x, suggesting that investors are perhaps being a bit more selective. For relative value analysis on Tuesday's FDR deal and info on a Red El�ctrica tap, see the IGM CORP SNAPSHOT

** Skandinaviska Enskilda Banken AB (SEB) was the sole visitor to the covered market Tuesday, with the borrower's EUR1bn 7yr line marking its first Swedish covered bond since Feb 2016. The deal was issued at m/s -5 while books finished up at around EUR1.2bn. See IGM's COVERED SNAPSHOT for more on this and details of a covered mandate for Deutsche Hypothekenbank

** FIG issuers stayed on the sidelined on Tuesday although Intesa Sanpaolo SpA held investor calls ahead of an inaugural EUR500m no grow 5yr Green deal which could launch as early as Wednesday. For relative value analysis and a recap of Monday's long date senior issue from AIG, see the IGM FIG SNAPSHOT


Wednesday's potential primary issuance

** Cassa Depositi e Prestiti S.p.A (Baa2/BBB-/BBB) may launch a new EUR 7yr benchmark via Banca IMI, BNP Paribas, Deutsche Bank, Goldman Sachs International and JP Morgan

** After holding investor calls on Tuesday, Intesa Sanpaolo SpA could go live with an inaugural EUR500m 5yr Green Bond via Banca IMI, Credit Agricole CIB, HSBC and SG CIB. The deal is expected to be rated Baa1/BBB-/BBB/BBBH

** Deutsche Hypo has hired Deutsche Bank, DZ Bank, HSBC, NordLB and UniCredit to lead manage a EUR500mn no grow 8yr Hypothekenpfandbrief transaction which is expected to be rated Aa1 (Moody's)

** Unrated French media conglomerate Lagardere may pull the trigger on a EUR300m 7yr line after holding an investor call Tuesday via Credit Agricole CIB and Natixis as global coordinators and joint bookrunners together with Commerzbank and ING as joint bookrunners

** Aroundtown Property Holdings plc (BBB) has mandated Goldman Sachs International, Morgan Stanley and UBS Investment Bank as joint bookrunners on a USD-denominated Reg S subordinated hybrid perpetual note, callable for the first time in July 2023


Tuesday's broader market developments

** EU risk assets rally as tech stocks recoup some of Monday's hefty losses.Price action follows a recovery in US and Asian stocks overnight

** GBP/USD on course to snap two-day declining run as UK core inflation posts highest YoY gain since Nov 2012

** German ZEW Current Conditions hits highest level since July 2011

** Govvies � Periphery outperforms core with BTPs leading the way despite chunky (EUR5.5bn) Italian supply. 10yr German yield moves further off recent record lows, but IGM technical analysts still see scope for lower yields if 8th June's 0.287% peak remains intact

** iTraxx indices tighten, both Main and Crossover post fresh series tights



Market snapshot (14.09 BST)

SXXP +0.57% / SX7P +0.44%

GER 2yr +2.0bps at -0.717% / 10yr +2.8bps 0.273%

Brent -0.23% at USD48.19

iTraxx Main -1.2 at 57.5 / Crossover -3.3 at 237.8


What to watch Wednesday

** Data: German Final CPI is seen matching the flash print at 1.4% YoY in EU Harmonised terms. Watching latest UK labour market data (Claimant count change est at +10k), while Eurozone Industrial Production is seen rebounding in April. Across the pond, US releases May CPI and Retail Sales

** Events: Spotlight on Fed policy announcement - Probability of rate hike ascribed at 92.7% via Bbg WIRP. Also watching European central bankers in the shape of ECB's Knot (08.30), Hansson (09.00), Weidmann (09.00) and Rimsevics (18.30)

** Supply: Germany plans to sell EUR3bn 2027 Bunds (10.30) and Portugal EUR1-1.25bn 2022 & 2027 PGBs (10.30)


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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