US: FED Reverse Repo Operation

• We have published and e-mailed to subscribers the MNI US Employment Insight.
• Please find the full report including MNI analysis: https://media.marketnews.com/US_Employment_Report_May2025_1306f78f63.pdf

Multiple corporate bonds launched around the Tsy 10Y auction:

• Date $MM Issuer (Priced *, Launch #)
• 05/06 $2B #Grupo Nutresa $1B 5Y 8%, $1B 10Y 9%
• 05/06 $1.75B #Standard Chartered $1B 6NC5 +135, $750M 6NC5 SOFR+168
• 05/06 $1.75B #Biogen $400M +5Y +115, $650M 10Y +145, $700M 30Y +165
• 05/06 $1.5B #Deutsche Bank 6NC5 +140
• 05/06 $1B #Dominion Energy 3Y +87.5
• 05/06 $750B #Gold Fields 7Y +175
• 05/06 $650M #American Homes 4 Rent 5Y +117
• 05/06 $500M #SURA Asset Mgt 7Y +230
• 05/06 $500M *Shinhan Bank 5Y +72
• 05/06 $500M #LYB Int 10Y +187
• 05/06 $Benchmark Bank of America 4NC3 +110a, 4NC3 SOFR+134, 11NC10 +140a
• 05/06 $Benchmark Starbucks Corp 3Y +100a, 5Y +115a, 10Y+135a
• 05/06 $Benchmark Cummins Inc +80a, +5Y +100a, 10Y +120a
• 05/06 $Benchmark Host Hotels & Resorts 7Y +195a
• 05/06 $Benchmark PNC 2NC1 +100a, 6NC5 +120a
• 05/06 $Benchmark UBS 11NC10 +128
• 05/06 $500M Eaton WNG 5Y +90a

• US yields have moved lower on Tuesday, which alongside some downward pressure on equity benchmarks, have enabled the underlying trend of a weakening dollar to prevail through the session. Having respected its 20-day exponential moving average well, the USD index is now back below 99.50, highlighting that the recent move above 100 in early May appears to be technically corrective.
• This dynamic sees the Japanese Yen as the best performer, with USDJPY comfortably back below the 143.00 mark, having entirely eroded the post-BOJ upswing from last week. Even the late rhetoric from President Trump suggesting there will be a “very big” positive announcement in the coming days was quickly brushed aside. The trend direction in USDJPY remains bearish and gains since Apr 22 are considered corrective. This refocuses short-term attention on initial support at 141.97, the Apr 29 low.
• Divergence between the low yielders is also notable today, as CHFJPY weakens around 0.85%. 176.00 has provided an important pivot point this year for that cross, and this week’s selloff bolsters the short-term significance of that resistance level. Moves have been underpinned by a more concerned tone regarding Swiss Franc strength from SNB President Schlegel, potentially highlighting that the risk reward for further Franc gains may be diminishing at this juncture.
• Elsewhere, gains for G10 currencies have largely mirrored the adjustment for the DXY, with the likes of EUR, GBP, AUD, NZD and CAD all rising around half a percent.
• Notably, USDCAD printed fresh cycle lows as President Trump made comments on the USMCA being still very effective and potentially not needing to be renegotiated. A dominant downtrend is in place for USDCAD, signalling scope for a move towards 1.3643, the Oct 9 ’24 low.