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** The steady pace of the EUR primary market continued Wednesday where a further seven issuers added a combined EUR4.55bn to the weekly total. For a breakdown of Wednesday's deals, see the IGM DAILY EUR NICS & BOOKS

** Corporate issuers offered a mixed bag where there was EUR supply from China Three Gorges Corporation (EUR 7yr Green) and Lagardere (EUR300m 7yr) whilst there was also a USD500m PNC6 Hybrid from Aroundtown. Sterling supply was also on tap courtesy of AT&T which followed up on its jumbo EUR8bn five-part last week with a GBP1bn Sep 2037 line as it continued to fund its acquisition of Time Warner. For RV analysis on all of the deals see IGM's CORP SNAPSHOT

** Deutsche Hypothekenbank AG and La Banque Postale Home Loan SFH both refreshed their covered benchmark curves with respective EUR500m 8yr Hypothekenpfandbrief and EUR500m 10yr French Societe de Financement de l'Habitat lines. Combined demand for the EUR1bn of paper printed totalled just EUR1.375bn. For more see the IGM COVERED SNAPSHOT

** Lloyds Banking Group plc was the sole FIG issuer in the primary market on Wednesday, with the issuer floating a EUR1bn 7yr frn which landed at 3mE +78 from a +90 area IPTs starting point on the back of books in excess of EUR2bn. For more on this and a debut EUR Tier 2 mandate from Deutsche Pfandbriefbank AG, see IGM's FIG SNAPSHOT


Thursday's primary prospects

At the time or writing there were no confirmed deals although the following issuers may decide to launch a new deal after recently holding investor calls/meetings:

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

** Bayerische Landesbank (A1/A-) may launch a GBP senior &/or covered bond after wrapping up a two-day investor roadshow on Wednesday via BayernLB and Credit Suisse


Wednesday's broader market developments

** EU risk assets trim gains as US data largely disappoints in the run up to the Fed's policy verdict/presser. US Retail Sales turn negative MoM in May, while inflation also heads south at -0.1% MoM in May (exp 0.0%, prev 0.2%)

** Brent was on course to snap a three-day winning streak

** Govvies - 10-30s core curves bull flatten, PGBs significantly outperform as markets absorb EUR1.25bbn worth of 2022 and 2027 PGBs. 10yr PGB yield declines more than 10bps at the time of writing to 2.793%. BTPs also a talking point as 10yr yield declines more than 30bbps during the previous 5 sessions

** iTraxx indices tighten then move sideways, both Main and Crossover hit fresh series tights

Market snapshot (14.49 BST)

SXXP +0.24% / SX7P -0.78%

GER 2yr +1.4bps at -0.703% / 10yr -2.4bps at 0.240%

Brent -0.64% at USD48.41

iTraxx Main -0.8 at 56.6 / Crossover -2.3 at 234.8


What to watch Thursday

** Data: UK Retail Sales (est -0.8% MoM, prev 2.3% ) will be closely watched amid the recent rise in inflation . Also watching French and Italian final CPIs and latest Eurozone Trade figures. Across the pond, Empire Manufacturing, Philly Fed Business Outlook and Industrial Production form the key highlights

** Events: UK's BoE is expected to keep interest rates on hold at a historical low of 0.25% (12.00). SNB also presents its latest policy decision (08.30). All that before BoE's Carney delivers his Mansion House speech (21.00)

** Supply: Spain kicks off supply with EUR4-5bn 2022-2037 bond auctions, while France hopes to raise EUR7-8bn via 2020-2023 OATs and EUR1-1.5bn via 2025, 2027 and 2047 OATeis

** Holidays: Thursday is Corpus Christi. From a European perspective, that will thin out attendance levels in parts of Austria, Germany, Portugal and Spain



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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