EM LATAM CREDIT: Brazil: Bolsonaro Proposes Son for President – Negative

• Despite the impressive surge higher for US yields on Wednesday, the USD index is holding at unchanged levels on the day, as a recovery for major equity indices today offsets the most recent greenback enthusiasm. Despite this, the DXY did make fresh 5-month highs, with a firmer-than-expected ISM services PMI supportive.
• Most of the G10 currency action has been centred around the Yen once more, with USDJPY posting an impressive 140 pip range on Wednesday. Initial risk off during SPAC hours and a moderately hawkish set of BOJ minutes prompted USDJPY to extend its pullback to 152.96, however, the subsequent recovery has been very notable.
• The pair’s intraday bounce picked up pace in late European trade, printing a new daily high through the London close. A break above yesterday's 154.48 would mark a full reversal of the JPY strength tripped by Katayama's warnings on FX movements on Tuesday - and again shows that USDJPY is a key beneficiary in a higher US yields environment.
• Today's price action affirms the view that pullbacks are technically corrective in nature, and a break of 154.39/48 supports a rally toward 154.80, the Feb 12th high.
• The more stable risk sentiment has allowed AUD and NZD to outperform, rising around 0.3% against the greenback, although these advances are yet to erode the prior declines this week.
• USDCAD remains a touch higher on the day above 1.41, looking to extend its winning streak to five sessions. Importantly, the pair has held an important resistance for now, the top of the bull channel drawn from the Jul 23 low.
• Higher equities boosted EM FX significantly, with the likes of MXN, ZAR and BRL shrugging off the moves for US yields. USDMXN has now reversed over 1% from intra-day highs, helping the pair edge back below 18.60 in late trade.
• The Bank of England headlines the economic calendar on Thursday, and is potentially set to be a close call decision between a hold and a 25bp cut.

Sarah Ferris at CNN reports on X, “Senate Dems involved in talks to end shutdown are using election to try to spur GOP to back a framework to temporarily extend ACA with some reforms to reopen govt, per 2 sources. “With that it ends fast; without we stare at each other another week.”

• The report appears to confirm that the ‘blue wave’ overperformance at yesterday’s elections has bolstered Democrats' position that a hardline stance on reopening the government is endorsed by voters.
• Senate Minority Leader Chuck Schumer (D-NY) said at a press conference a few moments ago: “Last night [election result] was clear, unmistakable, as a repudiation of Trump and a vindication of what Democrats have been fighting for over the past several months…”
• Schumer said voters, “know that Democrats are fighting for them and Republicans are doing nothing to address the healthcare crisis. And last night Republicans felt the political repercussions.”
• Schumer maintained that he will not endorse reopening the government until Republicans, “sit down with us and address the healthcare crisis.” Adds: “That’s the way to end the shutdown. Plain and simple.”
• When asked if he supports Senator Jeanne Shaheen’s (D-NH) initiative to reopen the government with a bipartisan deal, Schumer says: “I’ve always encouraged Republicans and Democrats to sit down and talk with each other but all Democrats agree that Trump should sit down and talk as a way to solve this.”

• Date $MM Issuer (Priced *, Launch #)
• 11/05 $1B #Santos Finance 10Y +168
• 11/05 $750M #CBRE Services 7Y +98
• 11/05 $600M #Mattel 5Y +130
• 11/05 $Benchmark Equinix 5Y +85
• 11/05 $Benchmark Polaris +5Y +200a
• 11/05 $Benchmark KEPCO 3Y SOFR+62, 5Y +47
• 11/05 $Benchmark Intercontinental Exchange 3Y +45, +5Y +60
• 11/05 $Benchmark Apollo Global Mgt 5Y +110a, 10Y +130a
• 11/05 $Benchmark Transcontinental Gas Pipeline 10Y +120a, 30Y +130a