EM CEEMEA CREDIT: Emlak Konut (EKGYO): Books Update $ 5Y Sukuk

• GBP experienced a brief bout of volatility as an ousted senior civil servant gave a rebuttal to PM Starmer’s Mandelson claims, with GBPUSD falling from around 1.3520 to 1.3483 lows. However, sterling has held in relatively well subsequently, with cable returning back to 1.35 and EURGBP remaining broadly unchanged on the session around 0.8710.
• More news articles are indicating the growing likelihood the BOJ will not hike rates next week, in line with a broad set of reporting over the past couple of weeks. While USDJPY has pushed back above 159.00, the day’s advance is in line with the general dollar optimism. 160.46 and 157.59 appear well established short-term parameters for the pair.
• MNI understands the BOJ may add an annotation highlighting extreme uncertainty driven by the middle east conflict when it revises January's baseline scenario within its updated Outlook Report. If board members’ projections diverge significantly, the BOJ may opt to present a range of forecasts rather than a median, which could be less meaningful under current conditions.
• US ADP weekly employment, Philadelphia Fed Non-Manufacturing Activity, Retail Sales and home sales data are on the data calendar for today, while Fed Chair Nominee Warsh testifies in his confirmation hearing. SNB's Tschudin also is scheduled to speak.

• The US dollar has edged higher through Tuesday’s European morning, fuelled by renewed uncertainty over peace talks in the Middle East, as Iran’s State TV have said an Iranian delegation has not yet been sent to Pakistan. The DXY has rallied through the overnight highs to print best levels of 98.31. Despite this, the daily change is just +0.15% as net adjustments across the G10 FX space remain broadly contained.
• AUDUSD continues to consolidate below the 0.7200 following fresh cycle highs on Friday, and is the worst performing major pair Tuesday, falling 0.32% to 0.7155. Conversely, the New Zealand dollar has been the main beneficiary on the session following the above-expectation NZ CPI data for Q1. Headline inflation rose 3.1% Y/y in the first quarter, with non-tradeables inflation increasing 1.1% Q/q, above the anticipated 0.9%.
• NZDUSD has rallied back above 0.59 as market participants assess inflationary pressures versus the pessimistic growth outlook in New Zealand, with recovery highs at 0.5929 the immediate topside level. After a brief test above 1.22 early in the session, AUDNZD fell just shy of the cycle highs at 1.2208. Subsequently, the cross has fallen roughly 80 pips, and is now down 0.5% as we approach the NY crossover.

Strong 3-year gilt auction of the 4.00% May-29 gilt with decent bid-to-cover despite the larger size, decent tail of 0.2bp, and the LAP (lowest accepted price) was decently above the pre-auction secondary market price.