EUROZONE ISSUANCE: EGB Supply - W/C 19 May, 2025 (2/2)
May-19 05:51
- On Wednesday, Germany will come to the market to sell E4bln of the 10-year 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- Spain will hold a Bono/Obli auction on Thursday, with the 5.15% Oct-28 Obli (ISIN: ES00000124C5), the 3.10% Jul-31 Obli (ISIN: ES0000012N43, that line was as expected in particular), and the 1.00% Jul-42 Green Obli (ISIN: ES0000012J07) on offer. The auction size will be confirmed today.
- France will then hold a MT OAT auction, also on Thursday with a combined E10.5-12.5bln on offer of the on-the-run 3-year 2.40% Sep-28 OAT (ISIN: FR001400XLW2), the on-the-run 2.70% Feb-31 OAT (ISIN: FR001400Z2L7) and the 0% May-32 OAT (ISIN: FR0014007L00).
- France will conclude issuance for the week with an OATei auction later on Thursday for a combined E1.5-2.0bln. On offer will be the 0.10% Jul-31 OATei (ISIN: FR0014001N38), the 3.15% Jul-32 OATei (ISIN: FR0000188799), the 1.80% Jul-40 OATei (ISIN: FR0010447367) and the 0.10% Jul-53 OATei (ISIN: FR0014008181).
- Note that Greece has announced it will not hold its GGB auction that had been scheduled for Wednesday.
NOMINAL FLOWS: The week ahead sees no redemptions and coupon payments for the week total E0.7bln of which E0.3bln are Italian and E0.2bln are Austrian. This leaves estimated net flows for the week at positive E37.2bln, up from E10.2bln last week.
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LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)
Apr-18 05:18
| Date | Time | Country | Event |
| 25-Apr | 0745 | FR | Manufacturing Sentiment |
| 29-Apr | 0700 | DE | GFK Consumer Climate |
| 29-Apr | 0800 | ES | HICP (p) / GDP |
| 29-Apr | 0900 | EU | M3 / Consumer Expectations Survey |
| 29-Apr | 0900 | IT | ISTAT Confidence Indices |
| 29-Apr | 1000 | EU | Consumer Confidence, Industrial Sentiment |
| 30-Apr | 0630 | FR | GDP (p) / Consumer Spending |
| 30-Apr | 0700 | DE | Import/Export Prices / Retail Sales |
| 30-Apr | 0745 | FR | HICP (p) / PPI |
| 30-Apr | 0855 | DE | Unemployment |
| 30-Apr | 0900 | DE | GDP (p) / State level CPI |
| 30-Apr | 0900 | IT | GDP (p) |
| 30-Apr | 1000 | EU | GDP preliminary flash est. |
| 30-Apr | 1000 | IT | HICP (p) |
| 30-Apr | 1100 | IT | PPI |
| 30-Apr | 1300 | DE | HICP (p) |
JGBS: Twist-Steepener Holds Going Into W/E, BoJ Gov Ueda Reiterates Caution
Apr-18 05:16
JGB futures are stronger, +18 compared to settlement levels, sitting near the middle of the range after a choppy session.
- “Governor Kazuo Ueda reiterates his stance that the central bank will carefully monitor if its economic outlook will be realized, accounting for the effects of US tariff measures, without preconception. The BoJ will raise the benchmark rate if the outlook is realized, Ueda says in response to questions in parliament.” (per BBG)
- “Fukoku Mutual Life Insurance Co. plans to invest in Japan's super-long government bonds this fiscal year after their yields skyrocketed. The company aims to increase domestic government bond holdings by ¥30 billion, with gross purchases potentially reaching ¥300-400 billion.” (per BBG)
- Earlier today, Headline CPI for March showed +3.6% y/y versus +3.7% estimate. Core and Core-Core printed +3.2% y/y and +2.9% y/y, respectively, versus estimates of +3.2% and +2.9% and priors +3.0% and +2.6%.
- Cash US tsys are closed today for the Good Friday holiday.
- Cash JGBs have twist-steepened, pivoting at the 20-year, with yields 2bps lower to 5bps higher.
- Swap rates are 2bps lower to 2bps higher, with a steepening bias.
- On Monday, the local calendar will see Tokyo Condominiums for Sale data.
CHINA: Bond Futures Marginally Up Despite Liquidity Injection.
Apr-18 04:02
- China’s bond market reacted very little to a second day of sizeable liquidity injection.
- China’s 10YR bond future is up just +0.03 at 109.04 and remains firmly above all major moving averages. The nearest being the 20-day EMA at 108.61.
- The 2YR bond future is down -0.02 at 102.46; remaining below all major moving averages – the nearest being the 20 day EMA at 102.52.
- The 10YR CGB is marginally lower in yield at 1.64%
