OPTIONS: Expiries for Jun16 NY cut 1000ET (Source DTCC)

• EU1b 5Y Fixed (May 21, 2030) at MS+65
  • Revised guidance MS+70a (+/-5) will price in range, guidance MS+80 area
  • Reoffer price 99.56 to yield 2.971%
  • Benchmark: OBL 2.4% 04/18/30 +72.6
  • Books above EU3b (including JLM interest): Leads
  • Coupon: 2.875%, annual, act/act ICMA
  • (MNI saw a good chance for a E1.0-1.5bln transaction size)
• Format: Reg S CAT1, registered, senior unsecured
• Settlement: May 21, 2025 (t+5)
• ISIN: XS3075496896
• Bookrunners: BNPP (B&D), GS, JPM
• Spot ref: 2.40% Apr-30 Bobl +72.6bps (Price: 100.700% / Yld: 2.245%) / HR: 99%
• Priced. TOE: 15:02 BST / 16:02 CET | FTT: 15:35 BST / 16:35 CET

Details as per Bloomberg / market source

• Despite another failure to break the 0.65 handle for AUDUSD, the pair is holding onto the majority of yesterday’s impressive 1.7% rebound off the lows. The softer-than-expected US CPI print was a contributing factor to the renewed AUDUSD optimism, however, the easing of trade tensions between the US/China and the associated boost to risk sentiment will also be providing a significant tailwind.
• Technically, Monday’s move lower was considered corrective and another test above 0.6500 reinforces the underlying bullish tone. Further strength would open 0.6528, the Nov 29 high, although there appears scope for a more protracted recovery towards the US election related highs at 0.6688.
• As a reminder, wage price index figures came in above expectations for Q1, and tomorrow’s calendar includes both consumer inflation expectations data and the April employment report. The RBA cash rate decision is on May 20.
• Despite SocGen seeing fresh USD weakness after the summer, they do like being long AUD after the thawing of US/Chinese trade relations and short CHF in the hope that geopolitical tensions ease up. Separately, Rabobank see risk of further bouts of short-covering in favour of the USD on a 1-to-3-month view which could push AUDUSD back to the 0.63 area. However, a relatively hawkish RBA allows Rabo to maintain a 12-month forecast of 0.65. 

• Treasury futures are extending session lows, Tsy Jun'25 10Y futures currently trades at 109-28 (-3) - lowest level since April 14 -- breach strengthens a bearish theme and exposes a key support at 109-08, the Apr 24 low and a bear trigger.
• Curves steeper: 2s10s +1.431 at 44.499, 5s30s +1.358 at 82.015
• Cross asset: Stocks trading mixed w/ SPX at 5902.0, Nasdaq at 19064.0, Gold retreating to 3180.0, Bbg US$ index inching off lows at 1229.34 (-1.95) vs. 1224.24 low.