EUROZONE ISSUANCE: EGB Supply: W/C 23 June (2/2)
Jun-20 17:27
- Italy will come to the market on Wednesday to hold a BTP Short Term / BTPei auction with new issues of both on offer. As expected we will see E2.5-3.0bln of the new 2.10% Aug-27 BTP Short Term (ISIN: TBC). However, we had not expect a new 6-year BTPei to launch alongside it with E2.5-3.0bln of the new 1.10% Aug-31 BTPei (ISIN: TBC) on offer.
- Finland will come to the market on Thursday to hold an ORI auction with up to E400mln on offer.
- Italy will look to conclude issuance for the quarter on Friday with a 5/10-year BTP / CCTeu auction. For the 5-year BTP there is a chance that the line is cancelled after the E12bln syndication earlier this month and the large BTP-ST/BTPei auction. There is also a chance that we see the 2.70% Oct-30 BTP (ISIN: IT0005654642) reopened for the first time or an off-the-run issue. We expect to see a reopening of the 10-year 3.60% Oct-35 BTP (ISIN: IT0005648149). We also have little conviction surrounding the CCTeu on offer but note there is a chance that we see a first reopening of the Apr-34 CCTeu (ISIN: IT0005652828) that was launched in last month’s auction. Details will be confirmed on Tuesday.
NOMINAL FLOWS: The upcoming week sees a E21.3bln redemption from a formerly 10-year Belgian OLO. Coupon payments for the week total E6.3bln of which E4.9bln are Belgian and E1.2bln are French. This leaves estimated net flows for the week close to flat, at negative E0.4bn, versus positive E25.0bln this week.
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US TSY FUTURES: BLOCK: Jun'25 10Y Ultra Sale
May-21 17:25
- -3,500 UXYM5 111-08, sell through 111-09 post time bid, DV01 $303,000.
- The 10Y ultra contract trades 111-05.5 last (-30)
US TSY FUTURES: Post-Auction Selling Extends
May-21 17:22
- Treasury futures extend session lows post auction, curves bear steepen (2s10s +4.122 at 5.349) with bonds yield climbing to 5.0521% high - highest since late October 2023. 10Y yield up to 4.5665% (+.0796).
- The Jun'25 10Y futures contract trades 109-19 low (-19.5) just above initial technical support at 109-18.5 (May 15 low) - strengthening a bearish theme and exposing key support at 109-08, Apr 24 low and a bear trigger.
- Cross asset update: Gold up 22.0 at 3312.13, stocks weaker again with rise in bond yield (SPX emini -55.5 at 5509.25), Crude mildly weaker (WTI -.10 at 61.93)
PIPELINE: Corporate Bond Update: Waiting for Citibank 4Pt
May-21 17:12
- Date $MM Issuer (Priced *, Launch #)
- 05/20 $4B *ADB 5Y SOFR+42
- 05/21 $2B #Turkiye 7Y 7.45%
- 05/21 $2B #CoreWeave 5NC2 9.25%
- 05/21 $2B #BPCE $1B 6NC5 +125, $1B 11NC10 +145
- 05/21 $1.5B *OKB 3Y +34
- 05/21 $1.25B *Kommunalbanken +5Y SOFR+49
- 05/21 $1B #Northwestern Mutual Life 30Y +135a
- 05/21 $Benchmark Citibank 2Y +58, 2Y SOFR, 5Y +78, 5Y SOFR
- Expected Thursday:
- 05/21 $1B Finnvera WNG 5Y SOFR+53a
