INVESTMENT-GRADE BONDS EDGED OUT its high-yield counterparts in net prices linked to actual trades. Equities continue to fight for guidance as investors keep a keen eye on the U.S. and China trade dispute. The 10-year Gilt declined 5.6 basis points. FTSE 100 -1.61%, German DAX -1.80%, CAC 40 +1.7%, STOXX Europe 600 -1.47%.

GERMAN MANUFACTURING TICKS HIGHER IN MARCH due to an increase in demand from Eurozone countries however, fell short of expectations.   Weak domestic demand nearly offset the increase in demand abroad, and subtracting large orders it would have further deteriorated.  "The slight order increase in March is not least due to bulk orders," stated the German economic minister.  Car sales across Western Europe receded in April; in Britain car sales plummeted 4.1 percent as “consumers are currently reluctant to make big-ticket purchase” given Brexit uncertainties. 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,  Lloyds Banking Group PLC (USD) 4.582% 12/10/2025 made some analysts' 'Conviction Buy' lists. (See the chart for Lloyds Banking Group PLC bonds below). Corey Mahoney (cmahoney@advantagedata.com).

Country	Maturity (Y)	Yield (%)	Previous (%)	Spread (bp)
Australia	10	1.748	1.801	-74.8
Belgium	10	0.453	0.458	-204.2
France	10	0.366	0.370	-213.0
Germany	10	0.011	0.028	-248.4
Italy	10	2.593	2.553		9.8
Japan	10	-0.029	-0.029	-252.5
Netherlands	10	0.181	0.194	-231.4
Portugal	10	1.117	1.122	-137.9
Spain	10	0.981	0.979	-151.5
Sweden	10	0.170	0.181	-232.6
U.K.	10	1.221	1.221	-127.4
U.S.	10	2.496	2.523	...

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 26 bp and Spain 53 bp. Sovereign wideners (5Y): China 40 bp and Ireland 30 bp.

New Issues	New Issues [Continued]
1. Liechtensteinische Landesbank Ag Vaduz (CHF) 0.125% 5/28/2026 (05/07/2019): 150MM Senior Unsecured Notes, Price at Issuance 100.384, Yielding .07%. 2. Car Inc. (USD) 8.875% 5/10/2022 (05/07/2019): 172MM Senior Unsecured Notes.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 05/07/2019, 132.09	NAV as of 05/07/2019, 103.55
Daily NAV Change (%) +0.01%	Daily NAV Change (%) -0.4%

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 -0.230%, as of 05/06/2019

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