EU CREDIT UPDATE: EUR Market Wrap
Mar-19 12:35
- 2y/10y bunds are flat/-2bp at 2.17%/2.79% - DM team flagged this morning's risk-off bid in response to fresh Turkish political turmoil though this has faded against light regional headline flow.
- Main/XO are -0.1bp/flat at 55.7bp/304bp while €IG looks flat on average. €IG curve movers include GLJGR (3-7 wider), BACR (2-5 wider), BHP (1-4 wider).
- Supply - EUR Corps: EOFP (5NC2 SUN). EUR Fins: AIB (11NC10 SUN), BACR (12NC7 Sub), ERSTBK (6.25NC5.25 SP), LLOYDS (5yr SUN). GBP Fins: MTROLN (PERPNC5.5 JR Sub).
- SX5E/SPX futures are flat/+0.2% at 5484pts/5682pts. €IG movers include Prosus NV (+3%), NIDEC CORP (+3%), ABB Ltd (+2%), Heidelberg Materials AG (+2%), Compass Group PLC (-4%), Worldline SA/France (-3%).
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JPY: Fading USD/JPY Adds to Bullish JPY Impetus
Feb-17 12:34
USD/JPY fade picking here slightly into (what would be) the US open - USD/JPY edges to a new pullback low at 151.42, marking a break through 151.65 and the overnight lows. Weakness here looks contained until any test or break through more notable support at 150.93 - the YTD low posted just over a week ago.
- Perhaps unsurprisingly volumes are lighter than average so far Monday with the US holidays, however activity is holding up pretty well: CME JPY futures show activity running ~15% below what you'd expect to see at this point in the session.
- As mentioned above, conviction over shorting EUR/JPY is building among the sell-side, and coincides with the failure of the cross to break technical resistance at the 50-day EMA in recent sessions - and should USD/JPY take out the bear trigger at 150.93, that makes two notable technical indicators pointing to JPY strength.
OPTIONS: Larger FX Option Pipeline
Feb-17 12:30
- EUR/USD: Feb18 $1.0300(E1.7bln), $1.0440-50(E1.3bln); Feb19 $1.0500(E1.5bln); Feb20 $1.0520-25(E1.5bln)
- USD/JPY: Feb19 Y155.00-20($1.7bln); Feb20 Y154.00($3.0bln)
- NZD/USD: Feb19 $0.5450(N$1.7bln)
- USD/CAD: Feb18 C$1.4295-00($1.5bln)
- USD/CNY: Feb20 Cny7.2000($1.9bln), Cny7.2500($1.4bln), Cny7.3700($1.3bln)
SONIA: 3.5k More Of the SFIM5 95.6 Put
Feb-17 12:20
SFIM5 95.60 put, bought for 2 in 3.5k.
- Now 7.5k total for the session.
