EUROZONE ISSUANCE: EGB Supply – W/C 6 October

Long 10-year:

• Reoffer: 99.698 to yield 3.662%
• Spread set at MS + 95bp (Guidance was MS+105bp area and revised to MS + 95-100bp (WPIR))
• Size: E1.0bln (in line with MNI estimate)
• Books closed in excess of E1.9bln (ex JLM interest)
• Maturity: 10 March 2036
• Coupon: 3.625%, Short first
• HR 100% vs 2.60% Aug-35 Bund. Spot ref 98.76 / + 91.9bp
• ISIN: XS3175946071

20-year:

• Spread set earlier at MS +140bp (guidance was MS+145bp area)
• Size: E750mln (MNI pencilled in E1bln)
• Books closed in excess of E1.6bln (ex JLM interest)
• Maturity: 10 September 2045
• Coupon: 4.25%
• HR 99% vs 2.50% July-44 Bund. Spot ref 90.23 / + 116.5bp
• ISIN: XS3175947046

For both:

• Bookrunners: Erste Group (B&D), HSBC and Societe Generale
• Settlement Date: 10 September 2025 (T+5)
• Timing: TOE: 16:24 BST /17:24 CET. FTT immediately.

From market source / MNI colour

• Treasury futures are poised to extend session highs ahead midday - mirroring German Bunds ahead into the European close.
• Currently, the Dec'25 10Y contract trades 112-18.5 (+14) vs. 112-19 high, 10Y yield -.0446 at 4.2168, curves remain flatter: 2s10s -1.370 at 60.643, 5s30s -2.137 at 121.475.
• THe Dec'25 10Y contract is nearing initial technical resistance at 112-20.5 (Aug 28 / 29 highs. A breach of this hurdle confirms a resumption of the current bull cycle and signals scope for an extension towards the 113-00 handle.

• EUR/USD: Sep05 $1.1550(E1.4bln), $1.1600(E2.1bln), $1.1740-50(E1.5bln), $1.1775-80(E1.1bln), $1.1800(E1.3bln); Sep08 $1.1600(E1.2bln)
• USD/JPY: Sep05 Y146.00($2.2bln), Y146.95-00($1.2bln), Y147.35-50($1.1bln)
• GBP/USD: Sep09 $1.3595-20(Gbp981mln)
• AUD/USD: Sep05 $0.6400(A$1.1bln), $0.6500-10(A$1.3bln), $0.6600(A$1.0bln)
• USD/CAD: Sep05 C$1.3850-60($1.0bln)