EU REAL ESTATE: Aedifica (AEDBB: BBB S&P): FY24

Skittish early Monday trade, with EGBs digesting familiar rhetoric from the hawkish wing of the ECB (Schnabel & Holzmann), while looking ahead to Trump’s inauguration.

• German & UK yields within 1bp of Friday’s close across the curve.
• The observance of the MLK holiday in the U.S. means that cash Tsys are closed until Asia hours.

Of note:

EURUSD 1.4bn at 1.0300/1.0325.

EURUSD 2.5bn at 1.0300/1.0325 (tue).

USDJPY 1.3bn at 156.00 (tue).

AUDUSD 1.69bn at 0.6210 (wed).

EURUSD 3.24bn at 1.0295/1.0320 (thu).

• EURUSD: 1.0300 (1.02bn), 1.0325 (475mln).
• AUDUSD: 0.6185 (550mln).
• NZDUSD: 0.5660 (329mln).
• USDZAR: 18.7000 (300mln).

German PPI rose to 0.8%% Y/Y in December, up from November's +0.1% Y/Y, but remains lower than consensus expectations of +1.1% Y/Y. Sequentially, PPI fell -0.1% M/M (vs +0.3% cons; +0.5% prior).

• Consistent with German CPI in December, energy deflation was less prominent than before, at -0.2% Y/Y (vs -2.4% November). This is the highest Y/Y rate since May 2023.
• That leaves ex-energy PPI broadly unchanged vs November, at 1.2% Y/Y - the rate has been hovering around that level for five months now.
• Looking at the non-energy categories, a deceleration in intermediate goods inflation stands out the most, at +0.1% Y/Y vs +0.4% in November. This comes as the trend of an acceleration in the category started to stall in September, and should, on the margin, be a positive sign regarding contained mid-term core goods CPI inflation in Germany.
• For further details see table.