NBP: Governor Says Strong PLN Helps Curb CPI, Reaffirms Hands-Off FX Approach
Feb-06 14:47
Governor Glapinski says that PLN exchange rate is impossible to predict and the MPC effectively treats it as an exogenous factor. He adds that recent PLN appreciation is a welcome development because it plays a role in curbing inflation, but adds that surveys show that it is not a major concern for domestic firms. He reaffirms the NBP's general hands-off approach to FX reflected in its reluctance to step into FX markets.
- The Governor notes that FX interventions are approved by the central bank's Management Board rather than the MPC (these are entirely separate bodies, only the Governor sits on both panels). He says that interventions happen extremely rarely and are conducted only to smooth out volatility, as targeting a specific level would be "suicidal".
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EURIBOR OPTIONS: Upside call spread
Jan-07 14:43
Euribor upside, looking for deeper cut into the end of the Year.
- ERZ5 99.00/100.00cs, bought for 2.75 in 6k.
EGB SYNDICATION: Slovenia 30-year: Allocations out
Jan-07 14:39
- Size set earlier: E1bln (MNI expected E1.0-1.5bln)
- Spread set earlier at MS+128bp (Guidance was MS+140bps area then MS+135bps area)
- Books in excess of E2.1bln (inc E410mln JLM interest)
- Maturity Date: 14 April 2055
- HR: 93% vs 2.50% Aug-54 Bund
- Settlement Date: 14 January 2025 (T+5)
- Joint Bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D) and OTP Banka Slovenia
- ISIN: SI0002104873
- Timing: Pricing to follow
From market source
EGB SYNDICATION: Belgium 10-year: Allocations out
Jan-07 14:30
- Size set earlier E7bln (in line with MNI expectations and same as 2023/24 10-year syndis)
- Spread set earlier at MS+66bps (guidance was +68bps area)
- Books closed in excess of E89bln (ex JLM interest)
- 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
- Timing: Allocations out, hedge deadline 14:50GMT / 15:50CET. Pricing to follow
From market source
