EM LATAM CREDIT: Braskem: Alagoas New Lawsuit - Negative
(BRASKM; Ba3/BBneg/BB+)
"*BRASKEM AWARE OF ALAGOAS STATE REQUEST FOR BRL4B COMPENSATION" - Bbg
Bad news generally as the regional government is claiming that nearby real estate values were damaged by the environmental problem even if they weren't directly damaged.
In a way this could be thought of as good news if it makes it less likely that businessman Nelson Tanure can acquire a large stake in the company and influence a debt restructuring.
He has said that a comprehensive and final settlement to the overall Alagoas liability was necessary to move forward so yet another lawsuit adds to the complication.
BRASKM 34s were last quoted T+736bp, 292bp wider since March 31st and 326bp wider YTD.
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US TSY FUTURES: BLOCK: Sep'25 10Y Ultra-Bond Sale
- -3,500 UXYU5 112-17, post time bid at 1331:49ET, DV01 $305,000.
- The contract trades 112-16 last (+14.5)
GBPUSD TECHS: Pullback Considered Corrective
- RES 4: 1.3800 Round number resistance
- RES 3: 1.3757 1.618 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 2: 1.3681 1.500 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3616 High Jun 5
- PRICE: 1.3544 @ 16:29 BST Jun 11
- SUP 1: 1.3466 20-day EMA
- SUP 2: 1.3335/3306 Low May 20 / 50-day EMA
- SUP 3: 1.3140 Low May 12 and key support
- SUP 4: 1.3041 Low Apr 14
Trend signals in GBPUSD remain bullish and the latest pullback appears to be corrective. A fresh cycle high last week, confirmed a resumption of the uptrend and an extension of the price sequence of higher highs and higher lows. This opens 1.3681 next, a Fibonacci projection. Support at 1.3466, the 20-day EMA, has been pierced. A clear break of it would suggest potential for a deeper correction and expose the 50-day EMA, at 1.3306.
US: FED Reverse Repo Operation
RRP usage climbs to $204.625B this afternoon from $182.725B yesterday, total number of counterparties at 46. Usage had fallen to $54.772B on Wednesday, April 16 -- lowest level since April 2021. Conversely, usage had surged to the highest level since December 31, 2024 on Monday, March 31: $399.167B.
