EUROZONE ISSUANCE: EGB Supply – W/C 27 October (2/2)
Oct-24 16:57
- Germany will return to the market on Wednesday with E4.5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056) on offer.
- On Thursday, Italy will look to hold a 5/10-year BTP / CCTeu auction. Details will be confirmed on Monday. We see a good chance for a new 10-year Feb-36 BTP to be launched at this auction, alongside a first reopening of the 5-year 2.85% Feb-31 BTP (ISIN: IT0005671273). We note that the Apr-34 CCTeu (ISIN: IT0005652828) has been sold at each auction since its May launch.
- Finland will conclude the month’s issuance on Thursday by holding an ORI auction.
NOMINAL FLOWS: The upcoming week will see sizeable redemptions of E54.5bln: E27.5bln of a formerly 30-year French OAT and E27.0bln of a formerly 10-year Spanish Obli. Coupon payments for the week total E17.8bln of which E10.1bln are Spanish, E6.5bln French and E1.1bln Italian. This leaves estimated net flows for the week at negative E46.1bln, versus positive E11.4bln this week.
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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."
