ENERGY: Canada Week: Wildfires in Western Canada Temporarily Shut Oil Operations

RRP usage rises to $157.537B this afternoon from $148.649B yesterday. Usage had fallen to $54.772B last Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B. The number of counterparties at 37.

European FI gained slightly on Tuesday, retracing some of the previous session's weakness.

• Gains were fairly steady through the session, with few major headline/macro catalysts, amid a backdrop of data that was largely on the weaker side of expectations.
• Spanish April preliminary HICP came in firmer than expected, though Spanish GDP came in soft.
• ECB consumer inflation expectations rose for both 1Y and 3Y, though the EC Economic Sentiment survey was weaker than expected.
• Below-consensus US job openings and consumer confidence readings added to the theme.
• ECB's Stournaras sounded cautious on moving rates below 2% (from 2.25% at present); an MNI sources piece debate within the Governing Council ahead of the June rate decision.
• Both the German and UK curves bull flattened, with 10Y Gilts touching 3-week lows. Periphery/semi-core EGB spreads widened modestly, with Portugal underperforming.
• Wednesday's calendar includes French GDP and German retail sales/unemployment, but the highlight will be German, French, and Italian flash April inflation.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is down 0.6bps at 1.736%, 5-Yr is down 1.5bps at 2.044%, 10-Yr is down 2.4bps at 2.497%, and 30-Yr is down 2bps at 2.927%.
• UK: The 2-Yr yield is down 2.3bps at 3.843%, 5-Yr is down 2.8bps at 3.958%, 10-Yr is down 2.9bps at 4.48%, and 30-Yr is down 2.6bps at 5.244%.
• Italian BTP spread up 0.2bps at 111bps /  Portuguese up 1.3bps at 55.3bps 

Corporate bond issuance looks to finish April strong with at least another $21.5B to price today:

• Date $MM Issuer (Priced *, Launch #)
• 04/29 $9B #World Bank $4B 3Y +35, $5B 7Y +55
• 04/29 $5B *KFW 5Y SOFR+42
• 04/29 $2B #ADQ $1B 5Y +85, $1B 10Y +95
• 04/29 $1.75B *Swedish Export Credit 3Y SOFR+45
• 04/29 $1B #GS Private $400M 3Y +225, $600M 5Y +250
• 04/29 $900M #Tyco Electronics $450M each: +5Y +83, 10Y +97
• 04/29 $800M #Weir Group 5Y +160
• 04/29 $500M #Constellation Brands 5Y +107
• 04/29 $500M Southwestern Public Service 10Y +115
• 04/29 $Benchmark Las Vega Sands 3Y +200, 5Y +225