A TOP FRENCH REGULATOR believes it is time to reform the financial markets across the European Union reviewing and changing existing laws. Robert Ophele, chairman of AMF, France’s financial markets stated, “The time is ripe to think about the main areas of work and principles that should guide the action of EU legislators and regulators for the coming years.” FTSE 100 +0.60%, German DAX +0.77%, CAC 40 +0.33%, STOXX Europe 600 +0.22%. The 10-year Gilt rose 2.3 basis points.

BRITAIN’S ECONOMY CONTRACTED FOR THE SECOND STRAIGHT MONTH on a significant decline in car production.  GDP dipped 0.4 percent in the month of April as automotive production slipped 2.7 percent month-over-month.  Rob Kent-Smith, head of GDP at the government statistic agency blames softening orders on Brexit stockpiling, “There was also widespread weakness across manufacturing in April, as the boost from the early completion of orders ahead of the UK’s original EU departure date has faded”.  The slowdown is a result of businesses stockpiling goods in the first quarter, the economy should pick up in the third quarter as companies return to normal buying schedules.  Surprisingly, the labor market has strengthened in a result of strong wage growth maintaining an unemployment rate near 50-year lows.  ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-yield bonds edged out high-grade debt as of 3 PM, London time.  Among European high-yield bonds showing a concurrence of top price gains at appreciable volumes traded, Petrobras Global Finance BV (USD) 8.75% 5/23/2026 made some analysts' 'Conviction Buy' lists. (See the chart for Petrobras Global Finance BV bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.482	1.479	-60.1
Belgium	10	0.155	0.191	-192.7
France	10	0.082	0.122	-200.0
Germany	10	-0.254	-0.237	-233.6
Italy	10	2.350	2.486		26.8
Japan	10	-0.115	-0.121	-219.7
Netherlands	10	-0.092	-0.057	-217.4
Portugal	10	0.618	0.669	-146.4
Spain	10	0.551	0.612	-153.1
Sweden	10	-0.081	-0.049	-216.3
U.K.	10	0.817	0.827	-126.5
U.S.	10	2.082	2.120	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): Finland 12 bp and UK 29 bp. Sovereign wideners (5Y): France 29 bp and Sweden 12 bp.

New Issues	New Issues [Continued]
1. Cooperatieve Rabobank UA (NL) (USD) 1.88% 6/18/2024 (06/10/2019): 185MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.88%. 2. JP Morgan Chase Bank NA (USD) 0% 6/20/2049 (06/10/2019):70MM Senior Unsecured Notes, Price at Issuance 100, Yielding 0%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 06/10/2019, 132.6	NAV as of 06/10/2019, 103.81
Daily NAV Change (%) +0.05%	Daily NAV Change (%) +0.25%

OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of positive momentum, although conditions are expected to deteriorate hindered by the termination of quantitative easing, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:

• Eurostat's unemployment rate: currently 7.7% (seasonally adjusted, March 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1)
• 6-month Euribor: current value -0.256%, as of 06/07/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved. http://www.advantagedata.com

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.