EM LATAM CREDIT: ARGENTINA: Bailout Agreement With U.S.

• Date $MM Issuer (Priced *, Launch #)
  • 09/09 $2.5B #Repsol E&P Capital $500M 3Y +130, $1B 5Y +160, $1Y 10Y +190
  • 09/09 $2.05B *NCL Corp $1.025B each: 5.25NC2 5.875%, 8NC3 6.25%
  • 09/09 $2B #Turkiye Govt International Bond 10Y 7%
  • 09/09 $1.5B #Raymond James $650M 10Y +85, $850M 30Y +95
  • 09/09 $1B *Korea Development Bank 5Y SOFR+64
  • 09/09 $750M #Huntington Bancshares PerpNC5 6.25%
  • 09/09 $650M #NBN Co 5Y +60
  • 09/09 $600M UWM Holdings 5.5NC2.5
  • 09/09 $500M #Met Tower 5Y +65
  • 09/09 $Benchmark Stellantis 3Y +145, 3Y SOFR+169, 5Y +180
  • 09/09 $Benchmark DTE Energy 3Y +57, 10Y +102
• Expected Wednesday:
  • 09/10 $3B KFW 3Y SOFR+33a
  • 09/10 $1B Federal Home Loan 2Y +4
  • 09/09 $Benchmark IDA (International Development Association) 7Y SOFR+57a

European yields rose modestly Tuesday, with some of the bull flattening seen over the past week taking a breather.

• Gilt and Bund yields gapped higher on the open, but largely traded within recent ranges in the morning session. Gilts outperformed Bunds early, in part helped by a strong 20Y UK auction.
• With European data (including French industrial production and UK BRC shop sales) not proving impactful, attention was on US benchmark payroll revisions.
• The latter delivered a bigger downward revision to payrolls through Q1 2025, triggering a rally for global core FI upon release (10Y Gilt yields briefly hit a fresh post-Aug 14th low).
• But the move slowly reversed as the revision was within a broad range of analyst forecasts and attention swiftly turned to US inflation data coming Wednesday and Thursday.
• Both the German and UK curves bear steepened modestly, with periphery/EGB spreads mixed (OATs outperformed).
• The week's European focus is Thursday's ECB decision. MNI's preview went out today (here): there appears to be little to no appetite for a September rate cut amongst ECB Governing Council members but we suspect there still an underlying easing bias.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 1.5bps at 1.941%, 5-Yr is up 1.6bps at 2.225%, 10-Yr is up 1.7bps at 2.659%, and 30-Yr is up 1.6bps at 3.28%.
• UK: The 2-Yr yield is up 1.1bps at 3.914%, 5-Yr is up 1.4bps at 4.037%, 10-Yr is up 1.8bps at 4.623%, and 30-Yr is up 1.8bps at 5.477%.
• Italian BTP spread down 0.8bps at 82.1bps / French OAT down 2.6bps at 81.0bps

RRP usage rebounds to $22.915B with 15 counterparties this afternoon from $19.416B Monday. Compares to $17.923B on Wednesday, Sep 3 - the lowest levels since early April 2021. This year's high usage of $460.731B occurred on June 30.