POWER: France to Adjust Off-Peak Power Tariffs to Align with Solar Output
Feb-06 15:44
France will adjust off-peak electricity tariff hours to better align with rising solar power generation, with the changes to be implemented over April-December, France’s Energy Regulator said, cited by Bloomberg.
- The move aims to reduce negative electricity prices, which occurred 4% of the time in 2024, double the 2023 rate, as solar output depresses mid-day power prices.
- Power distribution tariffs rose 7.7% in February to support grid upgrades and renewable integration and are expected to increase again in August 2026, in line with inflation.
- Up to 11mn households will see changes in off-peak hours starting in November, with different schedules between April-October and the rest of the year, it added.
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EGB SYNDICATION: New 30-year SLOREP: Priced
Jan-07 15:36
- Size set earlier: E1bln (MNI had expected E1.0-1.5bln)
- Spread set earlier at MS+128 (Guidance was MS+140bps area then MS+135bps area)
- Reoffer price 99.10 to yield 3.548%
- Benchmark: DBR 2.5% 08/15/54 +85.1
- Books above EU2.1b (including JLM interest)
- Maturity date: 14 April 2055
- Coupon: 3.5%, annual, act/act, long first
- Issuer: Slovenia Government Bond (SLOREP)
- Settlement: 14 January 2025 (T+5)
- ISIN: SI0002104873
- Joint bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D), and OTP Banka Slovenia
- Timing: 3:20pm London
Details as per Bloomberg and Market Source
EGB SYNDICATION: Belgium 10-year: Priced
Jan-07 15:34
- Size set earlier E7bln (in line with MNI expectations and same as 2023/24
10-year syndis) - Reoffer price 99.652 to yield 3.141%
- Spread set earlier at MS+66bps (guidance was +68bps area)
- Books closed in excess of E89bln (ex JLM interest)
- Coupon: 3.1%, annual, act/act, short first
- Maturity: 22-June-2035
- HR 103% vs 2.60% Aug-34 Bund
- Settlement: 14-January-2025 (T+5)
- Coupon: Annual ACT/ACT, short first to 22-June-2025
- ISIN: BE0000363722
- Bookrunners: BNPP (DM/B&D) / CACIB / HSBC / JPM / MS
From market source, Bloomberg
STIR: Year-End ECB & BoE Pricing Back To Little Changed On U.S. Data
Jan-07 15:32
U.S. data only having a fairly muted impact on EUR & GBP STIRs, perhaps limited by the already flat rate cutting profile (based on our assumptions) priced into GBP markets and hawkish repricing in EUR STIRs seen in recent weeks.
- The jump in the ISM prices paid component may also result in some cross-market hawkish Fed plays/isolated U.S. hawkish repricing, which would also explain the lack of follow through into EUR & GBP markets.
- ECB-dated OIS pricing ~102bp of cuts through year-end vs. 103.5bp heading into the data, little changed on the day.
- BoE-dated OIS contracts back to little changed on the day, showing 56.5bp of cuts through year-end vs. 58bp heading into the data.
