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** The primary market stepped up a gear on Tuesday although it was still a measured session which produced EUR4.9bn in the single currency from six separate transactions, albeit an improvement on the meagre EUR2.35bn which materialised on Monday. For the composition of Tuesday's EUR supply see DAILY NICS & BOOKS

** The IG corporate sector continued to tick over thanks to retail favourite Nestle Holdings while Bright Food Singapore Pte provided some Asian flavour. The former extended its curve with a EUR850m Jul 2025 line at m/s +15bps (books EUR1.4bn+), giving a NIC of ca. 6bps, while Bright Foods secured shorter 3yr funding to the tune of EUR800m at m/s +117.5bps on very healthy demand of EUR2.7bn+. See CORP SNAPSHOT for more details

** The SSA market bounced back after an eventless session on Monday as KfW and SNCF Reseau led the assault on Euros while MuniFin, Corporacion Andina De Fomento (CAF) and International Finance Corporation (IFC) were vying for attention in dollars. For more colour including RV analysis see SSA PREVIEW

** FIG issuers stayed on the side-lines while secondary spreads mostly edged wider. That followed a strong run in the prior week that had seen spreads grind tighter despite widening witnessed in synthetic markets. See FIG SNAPSHOT

** In the covered space, HSH Nordbank's EUR500m (no-grow) 3yr OP was the first German public-sector deal since March and the shortest euro covered deal of 2017 across any jurisdiction. Demand topped EUR900m with the deal offering a NIC of ~2bps at reoffer. Away from the single currency, Bank of Montreal launched a sterling 3yr FRN where demand of GBP1.1m facilitated a GBP800m deal. See COVERED SNAPSHOT


Wednesday's supply prospects

** European Bank for Reconstruction and Development (EBRD) is expected to price a $500m 3yr Global FRN via BofA Merrill Lynch, HSBC and RBC Capital Markets. Taking IoIs at 3mL+1bp area



Tuesday's broader market developments

** EU risk assets opened higher before getting hit on the back of weaker oil. Market focus shifts to Fed Yellen's testimony on Wednesday and Q2 earnings with a few big US banking names to report Friday

** Brent sees intraday weakness, amid concerns OPEC measures to cut supply may be insufficient

** Govvies - BTPs lead decline in periphery, EGBs back under pressure across the board with 10yr Bunds the weakest link among core nations in the run up to Wednesday's EUR5bn 2027 Bund auction

** iTraxx Main and Crossover on course for second consecutive day of tightening, latter posts fresh low for the week

Market snapshot (15.02 BST)

SXXP -0.47% / SX7P -0.01%

GER 2yr +0.7bps at -0.616% / 10yr +1.2bps at 0.55%

Brent -0.06% at USD46.85

iTraxx Main -0.3 at 56.3 / Crossover -0.7 at 253.7


What to watch Wednesday

** Data: The focus will be on the UK labour market report where Average Earnings are seen softening in May, while risk is to the upside for Eurozone May Industrial Production following better-than-expected reads from Germany, France, Italy and Spain. There are no top tier releases out in the US

** Events: Spotlight on central bankers for more clues on global interest rates with ECB's Visco (09.00), Fed's Yellen (13.30/15.00) and George (19.15) all penciled in to speak. Also watching the Fed Beige Book (19.00)

** Supply: Germany sells EUR5bn 10yr Bunds, Portugal EUR1-1.25bn 2027 and 2045 PGBs, while US plans to sell USD20bn 10yr Notes




SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline


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