ITALY AUCTION RESULTS: BTP / CCTeu Results Now Including The Green

• USD2bln WNG of the new 5-year Sep-30 ESM-Bond
• Spread set at SOFR MS+39 (SA 30/360) (guidance was SOFR+40 Area, IPT was MS+42 area, that was equiv. to CT5 + ~7.3bp)
• Books in excess of $10.2bn excl. JLM interest
• Issuer: European Stability Mechanism (TICKER: ESM)
• Issuer Ratings: Aaa (stable) (Moody's) / AAA (stable) (S&P) / AAA (stable) (Fitch)/ AAA (stable) (Scope)
• Format: Registered Notes, Reg S (NSS) / 144A
• Ranking: Senior, Unsecured, Unsubordinated
• Listing: Luxembourg
• Settlement: 4 September 2025 (T+6 (TARGET) / T+5 (NY))
• Maturity Date: 4 September 2030 (5Y)
• ISIN: Reg S: XS3171756128 / 144A: US29881WAG78
• Coupon: Fixed, Semi-annual, 30/360, Following, Unadjusted
• Bookrunners: CACIB(DM/B&D) / DB / JPM
• Timing: EMEA/ASIA books to close at 11.30CET/10.30UKT. Americas books to close 8.30EST/14.30CET/13.30UKT.

The transaction comes ahead of a USD3bln redemption for the ESM in September. That line also had a 5-year maturity initially.

Of note:

EURUSD 9.57bn between 1.1500/1.1650.

USDJPY 3.7bn at 147.90/148.11.

AUDUSD 1.86bn at 0.6500/0.6525.

EURUSD 4.02bn at 1.1625 (fri).

EURGBP 1.37bn at 0.8575 (fri).

• EURUSD: 1.1500 (3.22bn), 1.1550 (1.19bn), 1.1558 (528mln), 1.1560 (355mln), 1.1585 (396mln), 1.1615 (230mln), 1.1620 (593mln), 1.1630 (903mln), 1.1650 (2.15bn).
• USDJPY: 147.90 (502mln), 147.95 (1.04bn), 148.00 (990mln), 148.05 (681mln), 148.11 (486mln).
• USDCAD: 1.3800 (388mln).
• AUDUSD: 0.6500 (267mln), 0.6515 (453mln), 0.6520 (460mln), 0.6525 (680mln).
• USDCNY: 7.1669 (766mln).

In a development that a year ago would have been viewed as unthinkable, Danish Foreign Minister Lars Lokke Rasmussen has summoned US Chargé d'affaires Mark Stroh to answer questions regarding allegations that three US citizens have been conducting "covert influence operations" with the intention of fomenting a secessionist movement within Greenland. 

• Earlier in 2025, relations between Denmark and the US plummeted as President Donald Trump made repeated references to Greenland, a Danish autonomous territory, becoming part of the United States. He claimed it was crucial for national security. This was followed by a controversial visit to a US military base on Greenland from Vice President JD Vance.
• Danish public broadcaster DR reports that "at least three American men with ties to the US president and the White House" have been gathering the names of those in Greenland who could be recruited to join a secessionist movement, as well as those who would be strongly critical of the US. DR has said it cannot be sure whether the men were operating under orders or on their own initiative.
• In a presser, Rasmussen said the talks with Stroh would be a "preventive conversation", to make clear that if there was official interference in relation to the three men gathering names, this would violate international law.
• Relations between Copenhagen and Washington, D.C., were seen to have improved somewhat in recent months as 'takeover' rhetoric subsided and US language on European defence spending became more complimentary. However, these allegations could put relations back into the deep freeze.