EU CREDIT UPDATE: Average Cash Moves (Source: MNI, Bloomberg Finance L.P.)

• Size: E3bln (MNI expected E3bln, with risks of E4bln)
• Books closed in excess of E25bln (inc E750mln JLM  interest)
• Spread set: MS+47bp (guidance was MS+50bp area)
• Reoffer: 99.594 to yield 3.586%
• Hedge ratio 101% vs 2.60% May-41 Bund
• Maturity: 15 April 2041
• Coupon: 3.55%, Fixed, ACT/ACT(ICMA), short first
• ISIN: FI4000598776
• Settlement:  28 January 2026 (T+5)
• Bookrunners: Barclays, BNPP, Danske, DB (B&D), JPM
• Timing: Priced. TOE 13.28CET . FTT Immediately.

From Bloomberg/ MNI colour

RXH6 127.50/126.00 1x2 put spread 3K given at 24 vs. 127.90.

• In the FI space, the pullback in Bund futures highlights a potential reversal of the recovery since the Dec 22 low. Support to watch lies at 127.70, the Jan 9 low. It has been pierced, a clear break of it would strengthen a reversal threat, and open 127.13 next, the Jan 6 low. Key short-term resistance has been defined at 128.58, the Jan 19 high. For bulls, a resumption of recent gains and a breach of this level would resume the recent uptrend.
• Gilt futures traded lower yesterday as the contract extends the pullback from last week’s high. The move down has resulted in a break of support around the 20-day EMA, at 91.83. This undermines the recent bull theme and signals scope for a deeper retracement. The move down opens 91.04, a trendline support drawn from the Nov 19 low. Initial resistance is at 91.98, Tuesday’s intraday high.