EUROZONE ISSUANCE: EGB Supply
Germany and Italy are both due to return to the market to hold auctions this week. Austria has held a syndication while the EU, the Netherlands, Germany and Italy have held auctions already this week. We look for estimated gross issuance for the week of E37.5bln, down from E57.5bln last week.
- Today, Germany will return to the market to sell E4.5bln of the 10-year 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- Tomorrow, Italy will hold an auction to sell 5/10-year BTPs and a CCTeu. On offer will be E2.50-2.75bln of the on-the-run 5-year 3.00% Oct-29 BTP (ISIN: IT0005611055) alongside two off-the-run BTPs in the 10-year area: E1.5-2.0bln of the 3.85% Feb-35 BTP (ISIN: IT0005607970) and E1.0-1.5bln of the 3.35% Mar-35 BTP (ISIN: IT0005358806). E2.25-2.75bln of the Apr-33 CCTeu (ISIN: IT0005620460).
For more details on issuance this week and next week see the full document here: EZ250129.pdf
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CHINA PRESS: China To Further Relax Housing Restrictions
Home purchase restrictions in major cities are expected to be further relaxed next year, with housing mortgage rates likely to fall Securities Daily said in a commentary. Authorities will quicken de-stocking in the housing market by giving local authorities more flexibility in buying up unsold homes for affordable housing in terms of acquisition entities and prices, the newspaper said. Revitalising commercial and office buildings, as well as boosting credit supply to white-listed housing projects to ensure delivery are also necessary, the newspaper said.
CHINA PRESS: Logistics Sector Continue To Recover
Logistics volumes across China grew for a second consecutive month, up by 0.1 percentage point in November from October as pro-growth policies kicked in, Economic Information Daily reported, citing data by China Federation of Logistics & Purchasing. Industrial logistics demand rebounded significantly, while the growth of consumption logistics remains strong, the newspaper said. The total revenue of the logistics industry expanded for three consecutive months, with Jan-Nov revenue growing by 4% y/y to CNY12.5 trillion, the daily said.
EURGBP TECHS: Monitoring Resistance At The 50-Day EMA
- RES 4: 0.8448 High Oct 31 and reversal trigger
- RES 3: 0.8376 High Nov 19 and a bull trigger
- RES 2: 0.8356 High Nov 27
- RES 1: 0.8317/29 50-day EMA / High Dec 27
- PRICE: 0.8286 @ 06:44 GMT Dec 30
- SUP 1: 0.8223 Low Dec 19
- SUP 2: 0.8203 Low Mar 7 2022 and a major support
- SUP 3: 0.8200 Round number support
- SUP 4: 0.8188 1.00 proj of the Oct 31 - Nov 11 - 19 price swing
EURGBP is holding on to the bulk of its recent gains. Resistance at 0.8317, the 50-day EMA, has been pierced - but failed to trigger a sharper move higher. A clear breach of the EMA would undermine the bear theme and highlight a stronger reversal. A resumption of the primary downtrend would pave the way for a move towards major support at 0.8203, the Mar 7 ‘22 low and the lowest point of a multi-year range.
