PERU: Gov't Announces Austerity Measures To Meet Fiscal Rule, BCRP Next Week
Nov-07 13:19
- The government has issued an emergency decree that establishes extraordinary measures of austerity and efficiency of public spending, according to a post on X. It said that the decree will help to save PEN 1.2bn this year to strengthen fiscal discipline and ensure compliance with the fiscal rule, which sets a 2.2% of GDP ceiling on the fiscal deficit for this year.
- In other news, Congress formally declared Mexico’s President Sheinbaum as unwelcome in the country yesterday, following her decision to grant asylum to former Peru prime minister Betssy Chávez, who faces charges for a 2022 coup attempt. That decision to grant asylum also prompted President Jeri to break off diplomatic relations with Mexico earlier this week. The government is still considering whether to allow Chávez safe passage to Mexico.
- With the data calendar remaining clear today, focus remains on next week’s BCRP MPC meeting, where analysts are currently split about the prospects for a renewed rate cut. With the policy rate already very close to neutral, and growth around potential, a further rate hold still seems the more likely. However, recent softer-than-expected CPI data do at least keep the door open to a 25bp cut to 4.0%.
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PIPELINE: Corporate Bond Update: $750M Mamoura Launched
Oct-08 13:18
- Date $MM Issuer (Priced *, Launch #)
- 10/08 $1B #Kommunalbanken Norway WNG 3Y SOFR+37
- 10/08 $750M #Mamoura 10Y +55
- 10/08 $Benchmark Federal Home Loan 2Y +4a
- 10/08 $1.5B Energos Infrastructue 7NC3 investor call
BTP: Heading towards next Yield supports
Oct-08 13:00
- The Italian BTP is fading off the high, but is still trading close to some interesting levels, with the next small immediate resistance at 120.54, although plenty of Desks would argue that the September high of 120.67 provides the first resistance.
Looking at Yield Terms, reference 120.30:
- 3.437% = 120.68 (September low Yield).
- 3.400% = 121.00 (circa the July & Aug low Yields).
- 3.383% = 121.14 (June 2025 low, lowest since Dec in Yield).
US TSY OPTIONS: BLOCK: Jan'26 2Y Covered Call Spread
Oct-08 12:51
- 4,200 TUF6 104.62/105.37 call spds, 7.5 vs. 104-08.62/0.25% at 0844:49ET
