US DATA: Dispersion Metrics Show Narrowing In Breadth Of M/M Price Pressures
Apr-10 13:27
- Dispersion metrics showed a narrowing in the breadth of price pressures in March, not too surprising with supercore strength concentrated in a few items.
- Again, they can be noisy from month-to-month but our estimated share of the CPI basket growing faster than 3% annualized on the month was 46% (from 53% in Feb and 58% in Jan, vs 2019 av 42%) whilst the share >5% fell to 33% (from 44% and 49% in Jan, vs 2019 av 25%).
- Similarly, the share seeing outright deflation on the month increased from 33% to 42% (2019 av 38%).
- This is based on a narrow basket covering 57 items taken predominantly at index level 4.
- Separately, a more granular look across 192 items showed a stalling in the share of items seeing inflation faster than 3% Y/Y at 38%. This measure averaged 24% in 2019 and ~20% in 2015-19.
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STIR: Early SOFR Options Turn to Calls
Mar-11 13:24
- +12,000 0QH4 96.12/96.18 call spds 0.75 ref 9593
- +5,000 0QH4 96.12/96.25 call spds 1.25 ref 9593.5
- +2,500 2QH4 96.25/96.43 put spds 3.0 vs. 96.53/0.28%
- +2,000 SRU4 95.00/95.25/95.50/95.75 call condor 4.5 over 94.62/94.87 put spd
ESM ISSUANCE: Long 5-year syndication: Priced
Mar-11 13:23
- Reoffer: 99.771% to yield 2.672%
- Spread set earlier at MS+6bps (guidance was MS+8bps area)
- Size: E2bln WNG
- Books closed in excess of E10.5bln (ex JLM interest)
- HR: 107% versus 2.10% Apr-29 Bobl ref: 99.043 +37.2bps (ISIN: DE000BU25026)
- Settlement: 18-March-2024
- Maturity: 18-September-2029
- Coupon: 2.625% Ann, ACT/ACT, short first to 18-Sep-2024
- ISIN: EU000A1Z99T1
- Bookrunners: Barclays (B&D/DM), DZ, SG
- Timing: TOE 13:13GMT / 14:13 CET. FTT immediately
From market source
CNH: USD/CNH Looks Through Key Support
Mar-11 13:16
Continued (modest) CNH outperformance vs. the USD is notable given the uptick from lows in the BBDXY.
- A reminder that positive equity performance in China and mainland inflows via the HK-China Stock Connect schemes were noted in Asia/early London hours, supporting CNH.
- USD/CNH key support has been pierced (CNH7.1811), with USD/CNH showing as low as CNH7.1800.
- Next support levels come in at the 38.2% & 50% retracement of the Dec 29-Feb 14 recovery, located at CNH7.1779 and CNH7.1606, respectively.
