REAL ESTATE: CPI Property (CPIPGR: Perps Ba3/B+) New Type A Structure

• EUR Benchmark 5Y Fixed (May 21, 2030) MS+80 Area (we think there is a good chance of a large E1.0-1.5bln transaction size)
• Coupon: Annual, act/act ICMA
• Format: Reg S CAT1, registered, senior unsecured
• Settlement: May 21, 2025
• ISIN: XS3075496896
• Bookrunners: BNPP (B&D), GS, JPM
• Timing: May price today

Details as per Bloomberg

Yesterday’s low in gilt futures holds at the open (91.47), as the contract bases at 91.48, before recovering to ~91.65 last.

• The short-term bearish technical threat remains present, with the next support of note located at the April 15 low
• Yields 1-2bp lower across the curve, 2s10s and 5s30s curves stick within multi-week ranges.
• 2s continue to trade sub-4.00% after yesterday’s brief and limited break above.
• 10-Year yields have pierced the April 15 high (4.672%) during the past couple of sessions but haven’t meaningfully extended beyond that point.
• Fundamentals continue to point to further curve steepening, although a more activist approach from the BoE & DMO (when it comes to skewing bond sales more towards the short end) presents a risk to that view.
• Those steps from official agencies have played into the move away from April lows in long end swap spreads (along with broader macro dynamics centred on the tariff picture).
• GBP STIRs roughly in line with levels we flagged ahead of the gilt open, showing 48bp of BoE cuts through year-end, with the next 25bp step fully discounted through September.
• On the supply front, the DMO will come to market with GBP4.25bln of the 4.50% Mar-35 gilt this morning.

BoE Deputy Governor Breeden’s address seems geared towards counterparty and regulatory matters, as opposed to monetary policy.

• We noted that the setting for the address (keynote speech at the ISDA AGM) could limit the scope for meaningful monetary policy comments.
• Full text here.