BONDS: EGBs-GILTS CASH CLOSE: Bunds Outperform On Trump Tariff Threat

• Date $MM Issuer (Priced *, Launch #)
• 04/23 $4B #Walmart $750M 2Y +22, $750M 2Y SOFR+43, $1B 5Y +37, $1.5B 10Y +52
• 04/23 $Benchmark Rentokil Terminix 5Y +145a, 10Y +170a, 
• 04/23 $Benchmark OCP 5Y +265a, +10Y +290a
• 04/23 $Benchmark Hanwa Futureproof 3Y +95
• 04/23 $Benchmark Guardian Life 5Y +80
• 04/23 $1B Jane Street 8NC3 6.75%a
• 04/23 $Benchmark Bank of Peru 10.25NC5 6.5%a

New home sales rose much more strongly than expected in March, to 724k on a seasonally-adjusted annualized basis (vs 685k survey, 674k prior downward rev by 2k). While homebuilder surveys suggest significant pessimism over future prospects, for the moment March's reading marked a 6-month high and one of the 3 best months in the last 3 years.

• With existing home sales remaining moribund as high mortgage rates impair the ability for homeowners to move, new home sales continue to represent an elevated proportion of total sales (just under 30%, vs <15% pre-pandemic).
• With 503k new homes for sale at the end of last month - the most since December 2007 - the current pace of sales is equivalent to 8.3 months of supply, down from 8.9 months prior but still elevated on a historic basis. Single-family building permits have remained steady at around 1 million annualized over the past two years, so it looks like the supply pipeline remains open.
• As we have seen in other data points, activity in the South region - which represents two-thirds of overall new home sales - was strong, with a 13.6% M/M rise (potentially reflecting an improvement in weather).
• With supply coming online and mortgage rates still high, median prices are declining: on a Y/Y basis, they were down 7.5%, to $403.6k.

-5,000 SFRZ5 96.62/97.12 call spds, 13.0 vs. 96.49/0.18% at 1218:51ET