BONDS: EGBs-GILTS CASH CLOSE: ECB Comes To Periphery Rescue...For Now
Jun-15 16:41
News of an unscheduled ECB meeting to "discuss market conditions" saw periphery EGB spreads fall sharply Wednesday.
- Although the post-meeting announcement was short on details of measures to prevent eurozone fragmentation, spreads maintained most of their narrowing by the close: BTP spreads dropped ~25bp while GGBs down ~35bp on the day.
- Gilts modestly outperformed Bunds; both curves bull steepened, as the short end rallied on a retracement of central bank hike expectation.
- That of course comes just before the Federal Reserve decision, and Thursday's BoE.
Closing Yields / 10-Yr Periphery EGB Spreads To Germany:
- Germany: The 2-Yr yield is down 14.6bps at 1.085%, 5-Yr is down 13.4bps at 1.439%, 10-Yr is down 11.4bps at 1.644%, and 30-Yr is down 5.5bps at 1.803%.
- UK: The 2-Yr yield is down 14.6bps at 1.964%, 5-Yr is down 16.7bps at 2.063%, 10-Yr is down 11.8bps at 2.468%, and 30-Yr is down 8.3bps at 2.643%.
- Italian BTP spread down 24.9bps at 217.2bps / Greek down 35.4bps at 259.6bps
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FRANCE: Elisabeth Borne Named As French Prime Minister
May-16 16:31
French President Emmanuel Macron has appointed Labour Minister Elisabeth Borne as the country's new prime minister.
- Borne will suceed Jean Castex who resigned earlier today and only the second female prime minister in modern French history.
- More in bullet at 16:39
- Marine Le Pen immediately attacked the appointment, writing on twitter: "Emmanuel Macron demonstrates his inability to rally and the will to continue his policy of contempt, deconstruction of the state, social destruction, tax racketeering and laxity."
PIPELINE: $1.2B Virginia Electric Power 2Pt Launched
May-16 16:15
- Date $MM Issuer (Priced *, Launch #)
- 05/16 $1.2B #Virginia Electric Power $600M 5Y +98, $600M 30Y +160
- 05/16 $Benchmark Export Development Canada 5Y SOFR +36a
- 05/16 $Benchmark Paypal 5Y +130a, 10Y +175a, 30Y +210a, 40Y +240a
- 05/16 $Benchmark Commonwealth Bank of Australia (CBA) 3Y SOFR+60a
- 05/16 $Benchmark Keycorp 3NC2 +150a, 11NC10 +215a
- 05/16 $Benchmark AEP Texas 10Y +200a, 30Y +230a
- 05/16 $Benchmark Santander 2Y +145a, 2Y SOFR
- Expected Tuesday:
- 05/17 $1B OKB 3Y SOFR+27a
STIR: UPDATE BLOCK, SOFR Put Condor Carry-Over Buying
May-16 16:08
- Total 11,000 SFRQ2 97.25/97.43/97.50/97.62 2x2x1x1 put condors, for net level 1.0/belly over at 1156:00ET.
- Same structure Blocked early Friday 6.3k from 0.75-1.0 as acct loads up on downside/rate hike insurance. SFRU2 futures currently trading 97.665 (+0.010)
