EUROZONE ISSUANCE: EGB Supply – W/C 27 October (1/2)
Oct-24 16:55
Belgium, Italy, Germany and Finland will all look to come to the market in the upcoming week. We pencil in issuance of E26.2bln for the week, down from E29.5bln this week. There is also the potential for a Slovakian syndication.
- In July Slovakia’s ARDAL Director Daniel Bytcanek told the MNI policy team that a syndication in the second half of October was likely with a transaction size of E2bln with a new 12-year SlovGB the most likely candidate (with a possibility of a new 20-year SlovGB). We now pencil this in for the W/C 27 October.
- Belgium will kick off the week’s issuance on Monday with its last conventional auction of the year, with E2.5-3.0bln combined of the 2.60% Oct-30 OLO (ISIN: BE0000365743), the 1.25% Apr-33 Green OLO (ISIN: BE0000346552) and the on-the-run 10-year 3.10% Jun-35 OLO (ISIN: BE0000363722) on offer.
- Alongside this, the BDA announced that it would cancel the auction scheduled for 24 November (but still planned to conduct the two remaining ORI auctions on 7 November and 19 December). This has led to this auction being a little larger than we expected.
- Italy will look to hold a BTP Short Term / BTPei auction on Tuesday. On offer will be E1.75-2.00bln of the on-the-run 2.10% Aug-27 BTP Short Term (ISIN: IT0005657330) and E1.0-1.5bln of the 1.80% May-36 BTPei (ISIN: IT0005588881).
- Germany will come to the market on Tuesday with E4bln of the 2.20% Oct-30 Bobl (ISIN: DE000BU25059) on offer.
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OPTIONS: Notable Put Structures Across Euribor And German Bonds
Sep-24 16:52
Wednesday's Europe rates/bond options flow included:
- DUV5 107.20/107.10/106.90p ladder, sold at -9.25 (receive) in 7.6k
- RXX5 127/126 put spread sees paper pay 13 on 4K vs. 4K RXV5 128 puts at 7.
- ERH6/0RH6 98.125/98.00ps spread, bought the front for half in 5k
- ERF6 98.125/98.25 call spread, bought for 2 in 6.8k
- ERH6 98.25/98.37 call spread paper paid 1 on 2K
- ERM6 98.25/98.37cs, bought for 2.25 in 10k
- 0RZ5 97.9375/97.75ps 1x2 with 2RZ5 97.75/97.625 ps 1x2, sold the strip at 2.25 in 2.5k.
- SFIG6 96.20/96.10/96.00p fly, bought for 2 and 2.25 in 25k
FED: US TSY 5Y AUCTION: NON-COMP BIDS $96 MLN FROM $70.000 BLN TOTAL
Sep-24 16:45
- US TSY 5Y AUCTION: NON-COMP BIDS $96 MLN FROM $70.000 BLN TOTAL
BOE: Greene also discusses the prospect of "skipping cuts"
Sep-24 16:42
Greene: "I place a substantial premium on avoiding such policy reversals, as they threaten central bank credibility. A more restrictive stance that takes this aversion to policy reversals into account could, in my view, instead mean skipping cuts."
