EUROZONE ISSUANCE: EGB Supply – W/C 20 October (2/2)
- Finland will come to the market on Tuesday to hold a conventional auction for up to E1.5bln with on-the-run 7/10-year RFGBs on offer: the 2.625% Apr-32 RFGB (ISIN: FI4000591862) and the 3.00% Sep-35 RFGB (ISIN: FI4000587415). Note that both RFGBs have been launched this year with the 7-year launched via syndication in August and seeing demand so strong that it was reopened in the ORI the following week.
- Germany will also hold an auction on Tuesday to hold its final green auction of the year with a combined E1.5bln auction size. That will put total 2025 green funding at E14.5bln (versus a target of E13-15bln). The DFA will re-open two lines: the 1.30% Oct-27 Green Bobl (ISIN: DE0001030740) for E750mln, alongside the 1.30% Oct-27 Green Bobl (ISIN: DE0001030740) for another E750mln.
- Germany will return to the market on Wednesday 22 October with E3bln of the 7-year 2.50% Nov-32 Bund (ISIN: DE000BU27014) on offer.
NOMINAL FLOWS: The upcoming week will see redemptions of E14.3bln: primarily E13.3bln of a formerly 10-year Austrian RAGB and E0.8bln of a formerly 10-year Lithuanian bond. Coupon payments for the week total E3.9bln of which E1.2bln are Austrian, E1.0bln Belgian, E0.7bln German, E0.5bln Irish and E0.2bln Portuguese. This leaves estimated net flows for the week at negative E4.1bln versus positive E15.8bln this week.
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US: Air Defences Included In First Ukraine Military Aid Package Of Trump Admin
Ukrainian President Volodymyr Zelenskyy confirmed to reporters that Kyiv will receive air defence missiles for NASAMS and Patriot systems in the first US military aid package facilitated by the 'PURL' mechanism.
- Reuters reported yesterday that Undersecretary of Defense for Policy at the Pentagon, Elbridge Colby, “has approved as many as two $500 million shipments under the new mechanism called the Prioritized Ukraine Requirements List, known under the acronym PURL.” In total, PURL is expected to deliver roughly USD$10 billion in US weapons to Ukraine, funded by NATO partners in Europe via PURL.
- The Kyiv Independent notes, “Since taking office in 2025, U.S. President Donald Trump's administration has sold weapons to Ukraine or shipped deliveries authorized under former U.S. President Joe Biden. The new mechanism marks the first aid packages initiated during Trump's second term.”
- UK Prime Minister Sir Keir Starmer is expected to advance Europe’s case for stepping up pressure on Russia at a bilateral meeting with Trump at the Prime Minister’s Chequers residence tomorrow.
- Politico cautions against expecting any major breakthroughs but reports the two could strike an agreement on “lowering the price cap set on Russian oil, which the EU and U.K. have lowered while the US has not,” and Trump could “join European sanctions on individual Russian ships.”
PIPELINE: Corporate Bond Roundup: $37.25B Debt Issued Mon-Tue
No new issuance today, sidelined ahead of this afternoon's FOMC policy annc. $20.25B Priced Tuesday.
- Date $MM Issuer (Priced *, Launch #)
- 09/16 $8B *Mexico $1.5B +5Y +123, $4B +7Y +165, $2.5B 10Y +165
- 09/16 $2B *Phillips 66 $1B each: 30.5NC5.25 5.875%, 30.5NC10.25 6.2%
- 09/16 $1.75B *World Bank 7Y SOFR+50
- 09/16 $1.6B Directv 8.875% 2030 Tap
- 09/16 $1.5B *ZF N America 5.5NC 7.5%
- 09/16 $1.1B *Southern Power $550M each: 5Y +70, 10Y +90
- 09/16 $1B Solstice Advanced Materials 8NC3 5.625%
- 09/16 $800M *Carlyle 10Y +105
- 09/16 $700M Lucky Strike 7NC3 7%a
- 09/16 $750M Chord Energy 5NC2 6%
- 09/16 $550M *Transurban 10.5Y +90
- 09/16 $500M *Melco Res 8NC3 6.875%
US TSY FUTURES: BLOCK: Dec'25 10Y Ultra Sale
- -6,028 UXYZ5 116-06.5, sell through 116-07.5 post time bid at 1019:41ET, DV01 $552,000.
- The 10Y Ultra contract trades 116-07.5 last (+0.00)
