ECONOMIC SENTIMENT ROSE IN MAY surpassing expectations rebounding after 10 consecutive months of declines; the indicator improved to 105.1 in May from 103.9 in April.  In France, consumerconfidence hit a one-year-high reflecting households’ positive personal financial situations, meanwhile in Germany Europe’s largest economy, confidence dipped.  The 10-year Gilt slipped 2.8 basis points.  FTSE 100 +0.11%, German DAX -0.11%, CAC 40 -0.18%, STOXX Europe 600 -0.04%.

EUROZONE CORPORATE LENDING IMPROVED IN APRIL rising 3.9 percent signaling banks are lending, easing fears of a looming recession. The ECB plans to maintain the current level of lending by offering banks cheap lines of credit further stimulating the economy.  Prime Minister Theresa May announced late last week she would step down on June 7^th proclaiming she has done "everything I can" to push the withdrawal from the European Union Forward.  Given the departure of Theresa May parliament has the opportunity to negotiate a new withdrawal agreement with their terms if the EU will allow it.  ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-grade bonds edged out high-yield debt as of 3 PM, London time.  Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded, HUBS Group Funding (Jersey) Ltd. (USD) 4.125% 4/15/2026 made some analysts' 'Conviction Buy' lists. (See the chart for HUBS Group Funding bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.532	1.590	-79.1
Belgium	10	0.370	0.374	-195.3
France	10	0.279	0.282	-204.4
Germany	10	-0.114	-0.116	-243.7
Italy	10	2.554	2.642		23.1
Japan	10	-0.069	-0.060	-239.2
Netherlands	10	0.076	0.078	-224.7
Portugal	10	0.972	1.011	-135.1
Spain	10	0.823	0.857	-150.0
Sweden	10	0.050	0.050	-227.3
U.K.	10	0.958	0.954	-136.5
U.S.	10	2.323	2.323	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 29 bp and UK 30 bp. Sovereign wideners (5Y): Belgium 23 bp and Spain 54 bp.

New Issues	New Issues [Continued]
1. Sato-OYJ (EUR) 1.375% 5/31/2024 (05/28/2019): 350MM Senior Unsecured Notes. 2. Cooperatieve Rabobank U.A. (CHF) 0.25% 11/25/2027 (05/28/2019): 185MM Senior Unsecured Notes, Price at Issuance 100.125, Yielding .24%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 05/28/2019, 131.55	NAV as of 05/28/2019, 103.14
Daily NAV Change (%) -0.05%	Daily NAV Change (%) -0.05%

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 Preliminary)
• 6-month Euribor: current value -0.240%, as of 05/27/2019

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