EM ASIA CREDIT: Adani Ports (ADSEZ, Baa3/BBB-/BBB-) bonds move past Iran risks
Tightening in the shorter dated Adani Ports spreads, reflecting an overshoot on recent Iran news. Th...
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LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)
| Date | Time | Country | Event |
| 06-May | 0745 | FR | Industrial Production |
| 06-May | 0815 | ES | S&P Global Services/Composite PMI (f) |
| 06-May | 0845 | IT | S&P Global Services/Composite PMI (f) |
| 06-May | 0850 | FR | S&P Global Services/Composite PMI (f) |
| 06-May | 0855 | DE | S&P Global Services/Composite PMI (f) |
| 06-May | 0900 | EU | S&P Global Services/Composite PMI (f) |
| 06-May | 1000 | EU | PPI |
| 07-May | 0700 | DE | Manufacturing Orders |
| 07-May | 0745 | FR | Foreign Trade |
| 07-May | 0830 | EU | S&P Global Final Eurozone Construction PMI |
| 07-May | 0900 | IT | Retail Sales |
| 07-May | 1000 | EU | Retail Sales |
| 08-May | 0700 | DE | Trade Balance / Industrial Production |
| 08-May | 0800 | ES | Industrial Production |
BONDS: NZGBS: Bear-Steepener To Start The Week
NZGBs closed showing a bear-steepener, with benchmark yields 3-6bps higher. NZGBs finished near cheaps on a domestic data-light session. There was no cash dealing in US tsys in today’s Asia-Pac session with a holiday in Japan. Today’s US calendar will see the ISM Service PMI.
- Trump says - “NO PLANS TO TALK TO XI THIS WEEK, CHINA AND US OFFICIALS TALKING ABOUT 'DIFFERENT THINGS'”.(per BBG)
- Kato : “We are not considering the sale of US Treasuries as a means of Japan-US negotiations,” Kato spoke in Milan, Italy on Sunday, where he is attending the annual meeting of the Asian Development Bank.(per BBG)
- Swap rates closed 3-4bps higher.
- RBNZ dated OIS pricing closed flat to 2bps firmer across meetings. 26bps of easing is priced for May, with a cumulative 76bps by November 2025.
- Tomorrow, the local calendar will see ANZ Commodity Price data.
- On Thursday, the NZ Treasury plans to sell NZ$225mn of the 3.00% Apr-29 bond, NZ$175mn of the 4.25% May-36 bond and NZ$50mn of the 2.75% May-51 bond.
BOBL TECHS: (M5) Monitoring Support
- RES 4: 120.20 High Dec 12 ‘24 (cont)
- RES 3: 120.000 Psychological round number
- RES 2: 119.960 High Apr 7 and the bull trigger
- RES 1: 119.780 High Apr 22
- PRICE: 119.110 @ 05:56 BST May 5
- SUP 1: 119.072 20-day EMA
- SUP 2: 118.622 50-day EMA
- SUP 3: 118.060 Low Apr 10
- SUP 4: 117.680 Low Apr 9 and a key support
A bull cycle in Bobl futures remains in play and the steep sell-off between Apr 7 - 9 is considered corrective. The early April rally resulted in a break of key resistance at 119.040, the Feb 28 high, strengthening bullish conditions. The focus is on the 120.000 handle next. On the downside, firm support lies at 117.680, the Apr 9 low. The 20-day EMA, an important short-term support, is at 118.996.
