EMISSIONS: EU Mid-Day Carbon Summary: EUAs/UKAs Fall On EU Gas Losses

Bank of America note that “both JPY and EUR have gained ~12% against USD year-to-date as the market seeks alternatives to the USD.”

• However, they think “underlying dynamics differ and JPY's rise looks more fragile than EUR's: 1) JPY's rise has accompanied a bigger rise in speculative positioning and increasing focus on a potential U.S.-Japan currency deal; 2) EUR's rise has been more persistent than JPY's across market regimes; 3) EUR's rise has been supported by an idiosyncratic story of German fiscal expansion; 4) JPY's rise has accompanied diminishing market focus on Bank of Japan rate hikes”.

OI data points to fresh exposure being added in almost all Tsy futures between Thursday’s and Monday’s settlement, with the largest DV01 equivalent positioning swings coming in FV & WN futures.

• A reminder that the curve twist steepened over that time, indicating net long setting in TU futures, along with net short setting in FV, TY, UXY & WN futures.
• US futures were subjected to modest net long cover.

"The REPUBLIC OF AUSTRIA has mandated Barclays, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE, J.P. Morgan and Raiffeisen Bank International to lead manage its upcoming triple-tranche issuance consisting of a tap of its RAGB 2.5% Oct 2029 (ISIN AT0000A3EPP2), a tap of its RAGB 3.2% Jul 2039 (ISIN AT0000A3D3Q8) and a tap of its RAGB 3.15% Oct 2053 (ISIN AT0000A33SK7)."
"The transaction is expected to be launched and priced in the near future, subject to market conditions."
From market source

• We had noted the possibility of this in April in our EGB Issuance, Redemption and Cash Flow Matrix last week.
• We look for a total transaction size of E5-7bln.