PERU: Continued BCRP FX Intervention Highlights Concerns About Strong PEN
Nov-27 13:04
- The BCRP’s FX intervention just before market close last night, when it bought $171mn in the spot market, was the third such intervention in recent weeks. It came as USDPEN continues to hover in close proximity to recent 5-1/2 year lows, as the PEN remains supported by a robust BoP position and favourable terms of trade. The intervention emphasises policymakers concerns about continued FX strength, which may weigh further on what is already a very benign inflation backdrop.
- Headline inflation has remained below the 2% target for 11 consecutive months now, and analysts expect it remain near the lower bound of the 1-3% target range at 1.34% y/y in November (data to be released on Dec 1).
- Against this backdrop, the BCRP has remained on hold over the last couple of meetings, as the policy rate is already very close to neutral, but the weak CPI backdrop and FX strength keeps the door open to a possible further cut in the coming meetings. The next BCRP MPC meeting is on Dec 11.
- With USDPEN near multi-year lows, BBVA remain short PEN through a long EURPEN position, which they entered at 3.9275, targeting 4.10 (with a 3.85 stop). They also have a preference for PeruGB 2035, which is currently one of the cheapest bonds on the curve, in their view.
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GILT PAOF RESULTS: GBP375.0mln of the 1.125% Sep-35 linker sold.
Oct-28 13:03
- GBP375.0mln have been on offer.
- This leaves GBP14.651bln of the gilt in issue.
MNI:US AUG FHFA HPI SA +0.4% V +0.0% JUL; +2.3% Y/Y
Oct-28 13:00
- MNI:US AUG FHFA HPI SA +0.4% V +0.0% JUL; +2.3% Y/Y
EGB SYNDICATION: New 12-Year SlovGB: Update
Oct-28 12:57
- E2.0bln (MNI expected E1.5-E2.5bln) of the new 12-year Nov-37 SlovGB
- Spread set at MS+99 (revised guidance was MS+100 Area, following guidance at MS+105 Area)
- Books closed in excess of E3.8bln
- Coupon: Annual, act/act ICMA
- Format: Reg S CAT1, bearer
- Settlement: Nov. 4, 2025 (t+5)
- ISIN: SK4000028304
- Bookrunners: Citi, CSOB, DB (B&D), JPM
- Timing: May price today
Per Bloomberg / DJ, with MNI color
