EU UTILITIES: Contact Energy: 7yr

10-Year EGB spreads to Bunds are little changed to ~1bp tighter, with Bunds recovering to the middle of their session range after some contained two-way swings around the German & French PMIs (political uncertainty and soft prices biased the French readings lower, while German readings were mixed, with output prices on the firmer side).

• No real signs of weakness for DSLs & PGBs around the ongoing syndication processes, with 10-Year PGBs actually outperforming on the day.

The Eurozone aggregate composite PMI broadly in line at 51.2 (vs 51.1 forecast), with services 0.9 points higher than expected and manufacturing 1.2 points lower. This sees services and manufacturing surprise in the same direction as the German PMIs (whereas the French PMIs all disappointed). France saw falls in output prices, Germany increases while "the rest of the Eurozone registered a solid increase in selling prices, but one that was the slowest since last November."

• On output: "Germany was a key driver of growth in September, recording a solid increase in output that was the joint-fastest since May 2023, equal with that seen in May 2024. On the other hand, France saw activity decrease for the thirteenth consecutive month, and at the sharpest pace since April. The rest of the Eurozone registered continued growth of output, but the rate of expansion moderated."

Of Note:

EURUSD 4.95bn between 1.1750/1.1850.

EURUSD 1.15bn at 1.1800 (wed).

GBPUSD 1.28bn at 1.3500 (wed).

EURUSD 2.13bn at 1.1800/1.1805 (thu).

USDCAD ~1.2bn at 1.3795/1.3800 (thu).

EURUSD 1.78bn at 1.1750 (fri).

AUDUSD 1.29bn at 0.6625 (mon).

• EURUSD: 1.1700 (918mln), 1.1750 (1.98bn), 1.1775 (478mln), 1.1780 (683mln), 1.1800 (737mln), 1.1810 (536mln), 1.1850 (532mln).
• USDJPY: 148.00 (345mln).
• USDCAD: 1.3825 (230mln), 1.3830 (415mln).
• AUDUSD 0.6650 (906mln).