ARGENTINA: Current Account and Economic Activity Data Scheduled
Dec-20 17:31
- Economic activity data is expected to post a very moderate rise in October, of 0.2% M/m. The annual reading is still expected to be negative at -1.8% y/y, an improvement from -3.3% in the prior month. Consumer confidence and financial conditions improved in October, which points to a relatively stronger services.
- Indeed, Q3 GDP surprised expectations to the upside on Monday, rising 3.9% Q/q versus an estimate of 3.4%. According to the latest results of a Bloomberg News survey of 17 economists GDP for 2024 is expected at -3.6% y/y vs prior -3.8%, but then rising in 2025 to +4% y/y. Alongside, current account and wages data, figures will be released at 1900GMT/1400ET:
- Q3 Current Account Balance, prior $3.49b
- Oct. Economic Activity Index YoY, est. -1.8%, prior -3.3%;
- Oct. Wages MoM, prior 4.7%
- According to JP Morgan, Argentina’s largest companies are starting to revive long-term investment plans as the economy looks to emerge from recession. The bank currently forecasts $4B in corporate debt sales in 2025, a dip from this year’s levels, however, JPM sees a shift. They say more money is being raised for capital expenditures instead of refinancing maturities, adding that corporate growth may push next year’s sales to as high as $6 billion.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
US TSYS/SUPPLY: Preview $16B 20Y Bond Auction
Nov-20 17:24
Tsy futures are trading weaker, but well off morning lows (TYZ4 currently at 109-22.5, -4.5) ahead today's $16B 20Y-Bond auction (912810UF3) at 1300ET. WI is currently running at 4.649%, 5.9bp cheap to last month's reopen tail:
- October auction recap: Tsy futures hold weaker (TYZ4 trading 111-04.5, -6.5), after $13B 20Y bond auction reopen (912810UD8) tailed again: 4.590% high yield vs. 4.574% WI; 2.59x bid-to-cover vs. prior month's 2.51x (lowest since May).
- Indirect take-up 67.87% vs. 65.09% last month; direct bidder take-up 17.64% vs. 16.28% prior; primary dealer take-up 14.48% vs. 18.62% prior.
- Timing: today's 20Y note results will be available shortly after the competitive auctions closes at 1300ET.
CANADA: 10Y Auction - Lowest Bid-to-Cover Since Oct 2022
Nov-20 17:10
- Canada sold C$5bn of the 3.25% Dec’34 at an average yield of 3.368%.
- The bid-to-cover of 2.026 was the lowest for a 10Y auction since Oct 2022. It followed 2.382 in Oct and a five-auction average of 2.27.
- The Can-US 10Y yield differential hold a recent further increase on the day, currently at -104bp from -106.5bp at yesterday’s close, -112bp prior to CAD CPI and last week’s lows of almost -120bp.
PIPELINE: $2B Commonwealth Bank of Australia 2Pt Debt Launched
Nov-20 17:07
- Date $MM Issuer (Priced *, Launch #)
- 11/20 $3.5B #International Development Assn (IDA) 5Y SOFR+47
- 11/20 $2B #Commonwealth Bank of Australia (CBA) $1.3B 2Y +28, $700M 2Y SOFR+46
- 11/20 $850M #Smurfit Westrock Financing 10Y +100
- 11/20 $600M #Adani 20Y +7.45%
- 11/20 $BenchmarkPrinciple Life 5Y +90a
- 11/20 $Benchmark BP Capital 2027 tap, 5Y, 2034 tap
- 11/20 $Benchmark Blackstone Private Credit Fund 5Y +185a, 10Y +215a
- 11/20 $Benchmark State Street Bank & Trust 2Y +55a, 2Y SOFR, 5Y +75a
- 11/20 $Benchmark AppLovin 5Y +85, 7Y +105, 10Y +112.5, 30Y +137.5
