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Wednesday's primary market developments

** Primary supply in the single currency slowed to just EUR1.12bn on Wednesday, representing the lowest daily issuance volume so far this week. For pricing steps on the day's trades see IGM's DAILY NICS & BOOKS

** Corps led the way as Aroundtown Property Holdings PLC extended its senior unsecured curve with a new EUR500m long 9yr (due Jan 2026). Total books of over EUR1.2bn saw final pricing ramped in to m/s +148bp from m/s +160-165bps IPTs, outlining a NIC of 4-7bps at reoffer. Digital Stout, meanwhile, returned to Sterling for the first time since March 2014 � see the IGM CORP SNAPSHOT for more details as well as the performance of recently launched deals

** Invitalia was the only borrower to price a Euro SSA deal on the day. The issuer was set to raise EUR350m with a new 5yr, to be priced at m/s +112bp, as final books climbed over EUR900m thanks to around 100 accounts

** Euro supply in the FIG sector came to a complete halt on Wednesday, while spreads of recently launched deals nudged tighter - see the IGM FIG SNAPSHOT. BNS was on course to price a GBP150m 1.25% 06/22 tap at UKT +90

Thursday's supply prospects

Lower Saxony has mandated DekaBank and UniCredit to lead manage its upcoming EUR500m no grow Feb 2020 LSA. Expected rating AAA (Fitch)

Japan Bank for International Cooperation (JBIC) is taking IoIs for a USD 3yr fixed and/or FRN at m/s +43a / 3mL +equiv, and for 5yr and 10yr fixed rate USD global benchmarks at m/s +57a and m/s +72a respectively. Leads are BAML, DAIWA CM, JPM and NOMURA. Expected deal rating is A1/A+

Province of Buenos Aires, is eyeing an expected EUR500m no grow syndicated 5.5yr transaction as early as Wednesday, having completed a roadshow in London, Amsterdam and Paris on Tuesday 11th July

Wednesday's broader market developments

** EU risk assets extend gains in the second half following Fed Yellen's testimony where she affirmed the central bank's policy rate would not have to rise that much further to achieve a level that keeps supply and demand in balance in the economy

** USD declines against major peers

** FTSE100 nears two-week high amid broader risk-on tone in markets, and better than expected UK labour data. Latter sees ILO unemployment rate slip to its lowest rate since 1975

** Govvies receive boost post Yellen remarks, but 10yr Bund yield respects Tuesday's intraday low

** Brent posts a fresh high for the week, rising above USD48

** iTraxx Main and Crossover both post fresh lows for the week having widened Tuesday

Market snapshot (14.39 BST)

SXXP +1.32% / SX7P +0.69%

GER 2yr -1.2bps at -0.630% / 10yr -4.2bps at 0.578%

Brent +1.83% at USD48.39

iTraxx Main -1.3 at 55.4 / Crossover -8.2 at 246.6

What to watch Thursday

** Data: A light agenda sees UK report RICS House Prices and Germany, France and Spain release final inflation numbers, which should match their flash estimates. Across the pond, watching weekly Jobless Claims and PPI

** Events: Fed speakers dominate with Yellen (15.00), Evans (16.30) and Brainard (18.00) all due. Also watching ECB's Costa (14.00)

** Supply: Italy to sell a chunky EUR5.75-7.25bn worth of 2020, 2024, 2033 and 2037 BTPs (10.00), while Ireland plans to sell EUR750m worth of 2022 and 2045 IGBs before attention shifts to the USD12bn 30yr US bond auction (16.30)

SSA Priced / SSA Pipeline

CORP Priced / CORP Pipeline

FIG + Covered Priced / FIG + Covered Pipeline

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