EUROPEAN INFLATION: German PPI ex-Energy Unchanged in January
Feb-20 09:03
German PPI rose by 0.5 Y/Y in January, considerably slower than consensus expectations of 1.2% Y/Y and remaining below December's 0.8% rate. While there was a significant disparity of estimates ahead of the release, PPI came in below even the lowest projection. On a sequential basis, PPI fell by 0.1% M/M, vs +0.6% consensus and -0.1% in December.
- Energy deflation was more prominent than before, at -1.0% Y/Y (vs -0.2% prior) - that is a bit at odds with the unchanged yearly rate in German energy CPI in January, and might explain parts of the downside surprise in headline PPI.
- That leaves ex-energy PPI at +1.2% Y/Y in January - unchanged from December.
- See table for full details:
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGBS: Spreads To Bunds Marginally Wider
Jan-21 08:58
Trump’s apparent focus on imposing tariffs on Mexico & Canada in the coming weeks helps promote some modest EGB spread widening to Bunds today, although the major 10-Year cross-market differentials are within 1bp of yesterday’s closing level.
- Bund futures have pulled back from overnight highs, limiting the spread widening as the risk-off moves fade from extremes.
- 10-Year BTP/Bunds closed below 110bp, with cycle closing lows located at 106.4bp.
- Meanwhile, 10-Year OAT/Bunds last ~77.5bp, with French political and fiscal risks helping keep that spread above 75bp.
- Supply pressure is set to come via the French and Lithuanian syndications, with German green supply also scheduled.
USD: EUR and the Pound are testing their intraday lows
Jan-21 08:50
- The EUR and the Pound are falling back to where they fell Overnight post Trump's Tariffs headline, both EURUSD and Cable are back to their overnight intraday lows.
- Not Yet seeing any broader moves versus G10s at least.
- Small support in Cable comes at 1.2222, and a push all the way down to ~1.2186 would reverse Yesterday's WSJ story on Tariffs.
- EURUSD would need to drift to 1.0320 to reverse that move.
EGB SYNDICATION: 5/15-year LITHUN EMTN: Guidance
Jan-21 08:40
- EUR Benchmark 5Y Fixed (Jan. 28, 2030) MS+70 Area
- Coupon: Annual, act/act ICMA
- EUR Benchmark 15Y Fixed (Jan. 28, 2040) MS+145 Area
- Coupon: Annual, act/act ICMA
- Issuer: Lithuania Government International Bond (LITHUN)
- Settlement: Jan. 28, 2025
- Bookrunners: BNPP (B&D), BofA, JPM
- Co-Lead (no books): SEB Lithuania
- Investor presentation.
- Timing: May price today.
Details as per Bloomberg
