EM CEEMEA CREDIT: CEEMEA EM Credit Market Update midday
May-14 11:57
- In Rates, we see into midday UST 10Y yields at 4.47%, flat on the day. The 5s/10s curve shows at 36.72, also unchanged.
- Among Sovereigns, spread moves show a widening bias, charting in a flat/+10bp range. Among outliers Ukraine’s 35s chart +40bp move. Primary Latvia launched a EUR benchmark deal with 5Y tenor at MS+65bp, we circulated FVs earlier. News flow, macro data updates from Romania on still contracting industrial output but better sequentially, no signal for spreads.
- Among Corporates, spread moves show a marginal widening bias. Spreads show mostly in a flat/+10bp range. The news flow shows earnings for Tabreed (neutral) and busy primary with focus on USD denom. AT1s in Sukuk format for SABAB and a dual tranche for MASDAR, as well as a sub-bench EUR denom. 4NC3 snr pref deal for Croatia-based RBACRO, a subsidiary of Austria’s Raiffeisen. We have seen rating actions for Ghana-focused Tullow Oil (downgrade) and Emirates NBD Bank (upgrade).
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ECB: Weekly ECB Speak Wrap (Mar 24 – Apr 14)
Apr-14 11:57
The following publication provides a summary and analysis of ECB speak in the weeks leading up to and following US President Trump's April 2 reciprocal tariff announcement: 250414 - Weekly ECB Speak Wrap.pdf
- Since US President Trump’s initial reciprocal tariff announcement on April 2, the median Governing Council view appears to have more clearly shifted towards a 25bp cut on April 17.
- The MNI Policy team’s April 4 sources piece provided a much-needed signal amongst the noise, noting that U.S. tariffs were tipping the scales towards a 25bp rate cut, particularly after encouraging inflation data.
GBP: Cable targets the 2025 high
Apr-14 11:53
- Cable is finding some resistance at the 1.3207 level, so far managed a 1.3201 high, this level is not only the April high but also the 2025 high and best traded level since early October.
- The Scandies are still leading in G10, and the SEK and the NOK are printing fresh highs.
- USDSEK made a 9.6053 low (prices are according to Bloomberg) on the 3rd April, its lowest since April 2022.
EQUITIES: Commerzbank Rolling put Option
Apr-14 11:39
CBK (19/06/26) vs (18/12/26) 20p, bought the Dec for 0.90 in 5k.
