PERU: BCRP Set To Stay On Hold Tomorrow, Jeri Meets Chile President-Elect Kast
Jan-07 13:14
- Focus this week remains on tomorrow’s BCRP MPC meeting, where expectations are firmly tilted towards the central bank remaining on hold 4.25% in January. Robust activity data and inflation data consistent with the 1-3% target range should keep additional policy easing as unwarranted at this juncture. (See the MNI preview here.)
- Furthermore, analysts believe the policy rate will not be used an instrument to lean against recent PEN appreciation. With USDPEN continuing to hold near multi-year lows around 3.36. the central bank has returned to markets this week, buying a further $96mn yesterday and $4mn on Monday.
- On the political front today, President Jose Jeri is due to meet with Chile President-elect Jose Antonio Kast in Lima. The meeting comes after President Jeri said overnight that he fully agreed with the US intervention in Venezuela, saying that the actions taken were necessary and that democratic order must now be progressively re-established.
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EURIBOR OPTIONS: ERU6 98.00/98.12 Call Spread Lifted vs. 97.87/97.75 Put Spread
Dec-08 13:03
ERU6 98.00/98.12 call spread vs. 97.87/97.75 put spread paper paid -0.5 on 25K, buying the call spread.
US TSYS/SUPPLY: MNI UST Issuance Deep Dive: December 2025
Dec-08 13:03
We've just published our latest US Treasury issuance Deep Dive - Download Full Report Here
- The latest Treasury Refunding policy statement out Nov 5 contained no change to guidance on maintaining auction sizes "for at least the next several quarters", as expected.
- However, Treasury made its biggest hint in quite a while that increases are on the foreseeable horizon: "Looking ahead, Treasury has begun to preliminarily consider future increases to nominal coupon and FRN auction sizes, with a focus on evaluating trends in structural demand and assessing potential costs and risks of various issuance profiles."
- While it certainly doesn't mean there will be increases in at least the next 2 and almost certainly 3 quarters, it is an unexpected development and seems consistent with MNI's baseline expectation that the next upsizing could be in a year from now (November 2026).
- Upcoming issuance: December’s issuance schedule is set to see $315B in nominal Treasury coupon sales (unch from the equivalent month in the previous quarter), in addition to $24B in 5Y TIPS and $28B FRN for a total of $367B.
MNI EXCLUSIVE: MNI interviews former St. Louis Fed president
Dec-08 12:56
MNI interviews former St. Louis Fed president on monetary policy, Fed independence -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
