BRAZIL: Govt. to Spend More to Block Change in Petrobras Governance
Jun-22 11:31
- Brazil’s government is proposing a monthly financial aid of BRL 1,000 ($195) to help truck drivers offset rising diesel costs together with the expansion of an existing cooking gas voucher for low-income families at a combined cost of 5 billion reais, according to two people with knowledge of the matter. (Bloomberg)
- Petrobras’s Eligibility Committee has received this Tuesday the necessary documents to assess Caio Paes de Andrade’s nomitation as CEO, the state-owned company says in a securities filing.
- Committee meeting is scheduled for June 24.
- Central bank president attends open event hosted by O Globo newspaper in Rio de Janeiro at 7pm, followed by a recorded video to be released at Canal AgroMais, at 8:30pm.
- Campos Neto will also meet with IMF Executive-Director for Brazil Afonso Sant’Anna Bevilaqua in a behind closed doors meeting in Sao Paulo, 8:30am. (Local times)
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CANADA: USDCAD Slides But CAD Lags On Victoria Day
May-23 11:28
- Victoria Day sees the bond market and TSX closed today.
- USDCAD sits -0.44% at 1.2783 as CAD strength lags all majors bar JPY, off a session and two-week low of 1.2773.
- CFTC net specs: Latest data to May 17 showed a build in the prior week’s first net short CAD position since March. At -9.6% of open interest, it was the largest net short position since Oct’21.
- Technicals: The short-term bearish tone remains in play and a further fall could test support at the 50-day EMA of 1.2762, potentially opening a key support at 1.2714 (May 5 low) and putting pressure on those growing short positions.
BOND SUMMARY: EGB/Gilt: FI Trading Gets Off To A Weak Start
May-23 11:15
European government bonds have traded weaker this morning with equities broadly higher and G10 FX making gains against the dollar.
- Although US President Joe Biden's pledge to support Taiwan in the event of invasion has further ratcheted up bilateral tensions with Beijing, his announcement on reviewing Trump-era tariffs has been risk positive.
- The latest update of the German IFO survey for May showed a stronger than expected set of results and an improvement on the previous month's reading.
- Gilts have traded lower and the curve has slightly bear flattened with yields up 2-4bp.
- Bunds have underperformed gilts with the curve similarly bear flattening. Cash yields are 4-7bp higher on the day while the 2s30s spread is 3bp narrower.
- OAT yields are up 4-8bp, with the belly of the curve underperforming.
- BTP yields are up 1-4bp.
- Supply this morning came from Germany (Bubills, EUR5.242bn allotted) and Belgium (OLOs, EUR3.807bn). Later today France will offer EUR4.4-5.6bn of BTFs.
USD: Making news lows
May-23 11:13
- New lows for the USD versus GBP, CNH, CNY, AUD, SGD, CAD, SEK.
- Cable eye 1.2600, and a break through the latter, opens to 1.2638 High May 4 and a key resistance next.
