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Wednesday's primary highlights

** Primary supply continued to tick over on Wednesday, where another EUR4.75bn priced courtesy of seven separate deals. For more details on the latest batch of trades to print see IGM's DAILY EUR NICS & BOOKS

** The corporate sector was the busiest on the day where Heathrow Funding Limited, ADIF-Alta Velocidad, Altarea Cogedim and Tauron Polska Energia S.A printed a combined EUR2.1bn. Demand was rather tepid, however, with combined books at just EUR3.5bn (1.66x covered) with Tauron Polska Energia's EUR500m 10yr accounting for EUR1.4bn (40%) of the total demand. For more on Wednesday's corp deals and details of a Hybrid mandate for Evonik Industries AG, see IGM's CORP SNAPSHOT

** After jumbo deals on Tuesday from Spain and KfW, EIB and Agence Francaise de Development (AFD) hit the EUR market on Wednesday with EUR1bn Nov 2047 CAB and EUR1bn Jul 2032 lines respectively. Elsewhere IADB refreshed its Global Dollar curve with a 10yr line at m/s +24. See earlier IGM SSA PREVIEW for more on Wednesday's SSA issues, including relative value analysis

** The FIG spotlight remained on sub where Raiffeisen Bank International AG and Swiss Re pushed ahead with respective EUR650m and USD750m deals despite the more challenging risk environment and volatility in underlying rates markets. The deals were covered by 2.7 times and 6 times respectively suggesting that plenty of cash is still looking for a home in higher beta FIG paper. See IGM FIG SNAPSHOT


Thursday's primary prospects

** German State of Lower Saxony is readying a EUR500m no grow 10yr LSA issue via Barclays, BayernLB, Commerzbank, Natixis and NORD/LB. The deal is expected to be rated AAA by Fitch

** Evonik Industries AG (Baa1/BBB+) is expected to go live with a new EUR500m no grow RegS hybrid deal with an initial long 5 year non-call period. The instrument is expected to be rated Baa3/BBB- by Moody's/S&P

** Legrand S.A (A-) held an investor call on Wednesday ahead of a two-part EUR500m 7yr and EUR500m 15yr transaction via BNP Paribas. CACIB, CM-CIC, HSBC, Natixis and SG CIB

** After a recent roadshow, Go Ahead Group plc (Baa3/BBB-) may pull the trigger on a new 7yr via BNP Paribas, HSBC and NatWest Markets

** Bank of Queensland is linked to a EUR500m no grow 5yr Conditional Pass Through Covered Bond via BNP Paribas, Commerzbank, ING, National Australia Bank and UBS Investment Bank. The issue is expected to be rated Aaa/AAA (Moody's/Fitch). For the official comps list, see Monday's IGM COVERED SNAPSHOT


Wednesday's broader market developments

** Equities initially got spooked by a global tech stock slump and heightened policy tightening fears before recovering in the second half of the session, leaving valuations little changed ahead of EIA crude inventory data

** Gold on course to post second straight day of gains

** Govvies: Roller coaster session with Tuesday's bear move initially continuing before yields fell sharply in afternoon session after ECB sources said the market had misjudged Draghi's speech, only to edge higher once again in late trading. PGBs and SPGBs outperform with the latter supported by Tuesday's well received 10yr syndicated deal. Gilts massively under perform after surprise hawkish Carney rhetoric brings forward rate hike expectations, 10yr gilt yield +8.4bps at 15:47 London.

** EUR/USD extends Tuesday's gain, to post fresh YTD high

** iTraxx indices initially move in tandem with equities, Crossover touches 2 � week wide before both risk bulls regain the upper hand

Market snapshot (15.09 BST)

SXXP -0.12%

EUR/USD +0.60% at 1.1380

GER 2yr -1.6bps at 0.592% / 10yr +1.3bps at 0.380%

UKT 10yr +8.4bps at 1.171%

Brent 0.06% at USD46.68

iTraxx Main flat at 54.9 / Crossover +0.1 at 238.8


What to watch Thursday

** Data: Germany Gfk Consumer Confidence is seen steady at 10.4 in July. Flash CPIs are out for Spain and Germany with German states to begin reporting from 08.00 BST starting with Saxony. Both headline YoY figures are seen easing in June, with Spain's EU Harmonised measure forecast to print its softest YoY read since Dec 2016. Also on the European agenda is UK Mortgage Approvals and Eurozone Sentiment indicators. Across the pond, watching 3rd estimate US Annualised GDP (f/c 1.2%)

** Events: Fed's Bullard is due to speak about the US economy and monetary policy in London after EU hours (18.00)

** Supply: There are no significant term auctions scheduled in Europe or US on Thursday 29th June


SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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