PERU: Door Still Open To BCRP Rate Cut Next Week, Amid Concerns over FX Strength

• Secured Overnight Financing Rate (SOFR): 4.00% (-0.13), volume: $3.147T
• Broad General Collateral Rate (BGCR): 3.98% (-0.11), volume: $1.183T
• Tri-Party General Collateral Rate (TCR): 3.98% (-0.11), volume: $1.156T
• (rate, volume levels reflect prior session)

• Date $MM Issuer (Priced *, Launch #)
• 11/05 $Benchmark KEPCO 3Y SOFR+62, 5Y +47
• 11/05 $Benchmark Santos Finance 10Y +195a
• $5.7B Priced Tuesday

Eurozone PPI inflation was as expected in September, at -0.2% Y/Y after August's -0.6% was the first negative Y/Y rate since last November.

• Energy deflation tapered off a little to -2.4% Y/Y (-4.1% August).
• This left PPI ex-energy little changed vs August, at 0.9% Y/Y, having hovered around the 1.0% handle for six months now.
• None of the underlying non-energy categories saw a directional jump in September, with the largest deviation vs August seen in Intermediate goods, printing 0.1% Y/Y (0.3% prior). Capital goods, durable consumer goods and non-durable consumer goods all remained within 0.1pp of their August prints, at 1.8%, 1.6% and 1.9% (all Y/Y), respectively.
• Analysts generally expect little pipeline pressures in HICP core goods ahead, leaving energy developments as one of the main potential directional drivers of Eurozone PPI in the coming months.