EU TRANSPORTATION: Gatwick: Final

• Size: E1bln WNG (We had pencilled in a E1.0-1.5bln range for this week's ESM transaction, but leant towards a E1.25bln size rather than the E1bln WNG announced. Following today's sale, total ESM funding for the year will be broadly in line with the E7bln annual target)
• Bond: Tap of the 2.75% Feb-35 ESM bond
• Final terms: MS + 31bps (Guidance was MS +34bps area)
• Books: Above E14.5bln (excl JLM interest)
• Settlement: Oct. 21, 2025
• ISIN: EU000A1Z99W5
• Bookrunners: HSBC, MS (B&D), Natixis
• Timing: May price today

Source: Bloomberg / MNI colour.

• Size: GBP Benchmark (MNI expects GBP4.0-8.5bln (probably around the middle to top half of that range).
• Guidance: 4.375% Jan-40 Gilt +8/8.5bps
• Maturity: 31 Jan 2041
• Settlement: 15 Oct 2025 (T+1)
• Coupon: 5.25% SA, ACT/ACT (short first)
• Benchmark:
• ISIN: GB00BVP99897
• JLMs: BofA / Barclays / DB / MS (B&D/DM) / RBC CM
• Timing: Books open, today’s business

Source: Market source and MNI colour

Reuters sources report that "Chinese rare earth magnet companies have been facing tighter scrutiny on export license applications since September, even before Beijing's move last week to expand controls over the critical minerals used in magnets".

• The report then notes that "the lengthier reviews magnet makers face raise questions about whether China, the top global supplier, is seeking to throttle back magnet shipments, contrary to its commitment to speed up exports in a trade truce with the U.S. in May, to further tighten its grip on the products essential in military and commercial technology".
• This helps keep the risk-off tone intact, underpinning bonds and the broader USD, while weighing on equities.
• Markets remain hyper-sensitive to trade-related headlines in light of the recent escalation in the Sino-U.S. trade war.