Short-covering of euro corporate bonds helped the European market resist weaker-than-expected US September jobs data on Friday, leaving spreads broadly unchanged by the end of the day.
The FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 46.6 basis points more than similarly-dated government bonds at 1501 GMT, 0.1 basis point more on the day.
"The market opened wider in the morning but spent the rest of the day tightening. It's short-covering but volume is really low," said a bond trader in London.
General Motors' 8.375 percent euro bond due in July 2033 was unchanged at 278 basis points more than government debt.
Businesses in the world's largest economy added 96,000 jobs to payrolls in September, the government reported on Friday, below Wall Street economists' forecasts for 148,000 new jobs.
Four hurricanes swept through the Southeast US during August and September, which the government said likely held down employment growth "but not enough to change materially" its estimate of September jobs.
In the new issues market, the focus was on Italy, with one deal pricing and two on the way.
Italian publishing group L'Espresso on Friday sold 300 million euros of a 2014 bond at 105 basis points over midswaps, said lead managers for the deal.
The bond from the Rome-based company, which pays a coupon of 5.125 percent, was priced at 99.785 to give a spread of 116.5 basis points over the July 2014 Bund.
The spread was at the low end of previous indications of 105-110 basis points over swaps.
Caboto, JP Morgan, Lehman Brothers and Mediobanca were lead managers for the deal.
Next week, Italian grid network Terna is set to offer a 1.4 billion euro bond split into two parts. Sources close to the deal said on Friday that a 10-year part would yield 22-25 basis points over swaps, while a 20-year tranche would yield 35-40 basis points over swaps.
And in the high-yield market, Italian fashion and accessories group IT Holding will begin roadshows for a 185 million euro eight-year bond on Monday, a banking source familiar with the deal said on Friday.
The bond is being issued by the owner of the Gianfranco Ferre clothing label to refinance outstanding debt. Pricing is expected the week of October 18.
Back in the high-grade market, Dutch insurer Aegon NV has raised 450 million euros ($553.5 million) and $250 million with the reopening of a perpetual bond, it said on Friday.
With the sale, the total amount of outstanding Perpetual Capital Securities now stands at 950 million euros and $500 million, Aegon said in a statement.
The banks managing the sale said the euro portion was priced at par and pays a three-month re-settable coupon of 10 basis points over the DSL rate, capped at 8 percent.