EM LATAM CREDIT: Colombia: Fiscal Plan - Negative
(COLOM; Baa2neg/BB+neg/BB+neg)
"*AVILA: COLOMBIA ESTIMATES 8% GROWTH IN TAX REVENUE THIS YEAR
*COLOMBIA GOVERNMENT SPENDING IS HIGHLY INFLEXIBLE: AVILA
*AVILA: 86% OF 2025 COLOMBIA GOVT SPENDING IS INFLEXIBLE
COLOMBIA GOVT OVERESTIMATED 2025 REVENUES: AVILA
*COLOMBIA SEES 2025 FISCAL DEFICIT AT 7.1% OF GDP: AVILA
*COLOMBIA REVISES 2025 DEFICIT FORECAST TO 7.1% OF GDP FROM 5.1%
*COLOMBIA FINMIN WILL SEND NEW TAX BILL TO CONGRESS: AVILA" - Bbg
Confirmation that the fiscal deficit is projected at 7.1% due to a shortfall in tax revenues and inflexible expenses.
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ASIA: Coming Up In Thursday's Asia Pac Session
| 2240BST | 0540HKT | 0740AEST | Fed's Daly Speaks In Fireside Chat |
| 2345BST | 0645HKT | 0845AEST | New Zealand Apr Food Prices |
| 0050BST | 0750HKT | 0950AEST | Japan Weekly Investment Flows |
| 0200BST | 0900HKT | 1100AEST | Australia May Consumer Inflation Expectation |
| 0230BST | 0930HKT | 1130AEST | Australia Apr Jobs Data |
| 0335BST | 1035HKT | 1235AEST | New Zealand Bond Sale |
| 0400BST | 1100HKT | 1300AEST | South Korea Mar Money Supply |
| 0435BST | 1135HKT | 1335AEST | Japan 5yr Bond Sale |
USDCAD TECHS: Trend Signals Remain Bearish
- RES 4: 1.4296 High Apr 7
- RES 3: 1.4111 High Apr 4
- RES 2: 1.4031 50-day EMA
- RES 1: 1.4016 High May 12 / 13
- PRICE: 1.3958 @ 16:02 BST May 14
- SUP 1: 1.3814/3751 Low May 8 / 6 and the bear trigger
- SUP 2: 1.3744 76.4% retracement of Sep 25 ‘24 - Feb 3 bull run
- SUP 3: 1.3696 Low Oct 10 ‘24
- SUP 4: 1.3643 Low Oct 9 ‘24
USDCAD maintains a firmer short-term tone. Despite the latest gains, the trend condition remains bearish and the move higher is considered corrective. A fresh cycle low last week reinforces the bearish theme. Potential is seen for a move towards 1.3744, a Fibonacci retracement. Note that moving average studies are in a bear mode position, highlighting a dominant downtrend. Key resistance is seen at 1.4031, the 50-day EMA.
US TSYS: Projected Rat Cut Pricing Continues to Cool
- Treasuries look to finish near late Wednesday session lows, curves mixed (2s10s +1.654 at 47.722; 5s30s -.065 at 80.592) as 10s retreated to the lowest level in four weeks.
- Jun'25 10Y futures trade 109-21 (-10), session lows strengthens a bearish theme and exposes a key support at 109-08, the Apr 24 low and a bear trigger.
- Projected rate cut pricing steady in the near term while longer dates retreat vs. this morning levels (*) as follows: Jun'25 steady at -2.1bp, Jul'25 steady at -9.8bp, Sep'25 at -22.8bp (-24.7bp), Oct'25 at -34.8bp (-37.3bp), Dec'25 at -49.6bp (-52.9bp).
- No obvious headline or Block trade driver for the decline, it appeared markets were gearing up for higher inflation signals from tomorrow's heavy round of economic data: Retail Sales, PPI, Weekly Claims, Industrial Production and Capacity Utilization.
- Fed VC Jefferson continues describes the current level of rates as "moderately restrictive" (Chair Powell reiterated last week that policy was modestly or moderately restrictive, with Gov Kugler Monday also using the term "restrictive").
- Stocks trade near steady to mixed after the bell, the tech heavy Nasdaq outperforming as chip stocks outperformed for the second consecutive session.
- Cross Asset roundup: Bbg US$ index gradually recovered from early morning lows (BBDXY +1.03 at 1232.32 vs. 1224.24 low); broad decline for Gold to 3177.75 (-72.26); crude lower (WTI -.83 at 62.84.)
