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** Euro supply continued to tick over Thursday with a total of six issuers printing a combined EUR4.01bn, lifting the weekly issuance total up to EUR20.73bn. See IGM's DAILY EUR NICS & BOOKS for more on the day's deals including the pricing steps on each

** Another duo of covered bonds hit the screens Wednesday, headlined by Nationwide Building Society which brought a well-received EUR1bn Jun 2032 UK covered bond, which marks the longest outstanding issue in this format. Offering an eye-catching NIC of ca.15bps at IPTs of m/s +40 area, demand flew in for the deal with books ending up at over EUR3bn which allowed Nationwide to ramp in pricing to a final m/s +30. Elsewhere BNZ International Funding tapped the 7yr part of the New Zealand covered bond curve for EUR750m at m/s +15 with books on this one at a more modest EUR950m. Fore relative analysis on these see IGM's COVERED SNAPSHOT

** In FIG, XLIT Ltd. (guaranteed by XL Group) followed up on a roadshow with its 30NC10 SEC-registered sub where the EUR500m transaction landed 35bps inside IPTs. Unrated Banca Farmafactoring S.p.A,. got a tepid looking response for its EUR200m 5yr senior which priced 5bps inside IPTs of +200 area on books approaching EUR200m. See IGM FIG SNAPSHOT

** Corporate supply was limited to just the one deal on the day, a EUR1bn 8yr line from Italian state-owned railway infrastructure company Ferrovie dello Stato Italiane SpA. The deal landed at m/s +105 with pricing ramped into m/s +105 from a +120 area IPTs starting point with final demand at around EUR1.9bn. Elsewhere recent corporate deals widened in the secondary market. For more see the IGM CORP SNAPSHOT

** SSA issuance on Thursday came courtesy of RATP which printed a debut EUR Green issue following a recent investor roadshow. The borrower raised EUR500m via a 10yr line which priced at OATs +30 after being squeezed in from OATs +mid 30s IPTs on the back of a more than 3x oversubscribed book (EUR1.6bn+)


Friday's primary prospects:

At the time of writing there were no confirmed deals for Friday although the following issuers may decide to tap the market:

** Leeds Building Society could follow hot on the heels of Nationwide with a UK covered bond of its own. The borrower wrapped up a series of investor meetings on Wednesday via Barclays, BNP Paribas, Natixis, Santander and UniCredit ahead of a EUR intermediate tenor deal which carries expected ratings of Aaa/AAA by Moody's/Fitch

** 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

** Adif-Alta Velocidad (Baa3/BBB+) began an investor roadshow last Friday via BBVA, BNP Paribas, Credit Agricole CIB and Santander ahead of a potential debut EUR 6yr Green issue





Thursday's broader market developments

** EU risk assets start weaker before paring worst losses as equities take direction from oil prices. FTSE MIB forms weakest link following Wednesday's rally aligned to a surge in banking stocks after Intesa Sanpaolo confirmed an offer to buy some parts of Veneto Banca and Banca Popolare di Vicenza

** June data showed French Business Confidence was the highest since Jul 2011 (+1pt to 106) while EZ Consumer Confidence was the best since Apr 2001 (improved to -1.3 from -3.3)

** Brent respects Thursday's USD44.35 intra-day low - which marked the weakest level since 14th November - as prices rebound in second half

** Govvies benefited from the slight risk-off tone in equities with 10yr yields led broadly lower by Gilts, while 2yr BTPs underperform at short end of the spectrum

** iTraxx indices go their separate ways. Main posts fresh series tight, while Crossover breeches Wednesday's wide intra-day

Market snapshot (14.46 BST)

SXXP -0.22% / SX7P -0.86% / FTSEMIB -0.76%

GER 2yr -0.2bp at -0.65% / 10yr -1.7bp at 0.244%

Brent +0.96% at USD45.25

iTraxx Main -0.8 at 54.9 / Crossover +1.9 at 235.6


What to watch Friday

** Data: It's flash Manufacturing and Services PMI day in Europe, with the pan-EZ versions seen easing in June, albeit marginally. Final Q1 French GDP should match the flash print at 0.4% QoQ, down from 0.5% in Q4. Belgium Business Confidence is also on the European agenda, before attention shifts to US flash PMIs and New Home Sales.

** Events: Watching Fed's Bullard (16.15), Mester (17.40) and Powell (19.15)

** Supply: There are no significant term auctions scheduled in Europe or US on Friday 23rd June



SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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