EU HEALTHCARE: H Lundbeck (LUNDC: BBB-) 4yr Final
Final €500m 4yr ms+120
• Books: >1.45bn
• IPT €500m WNG 4yr +145-150a
• FV ms+115
• Ipsen is a reasonable comp in terms of size. 7yr ms+158. LUNDC 27s 2.5yr ms+90. Ms+115 would lie on a straight-line between the 2.
• Company raised leverage in the past to acquire Alder and paid it off in good time. This deal is to fund the Longboard acquisition.
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US TSY FUTURES: Fresh Positions Set In Most Contracts After Easter Weekend
OI data points to fresh exposure being added in almost all Tsy futures between Thursday’s and Monday’s settlement, with the largest DV01 equivalent positioning swings coming in FV & WN futures.
- A reminder that the curve twist steepened over that time, indicating net long setting in TU futures, along with net short setting in FV, TY, UXY & WN futures.
- US futures were subjected to modest net long cover.
| 21-Apr-25 | 17-Apr-25 | Daily OI Change | OI DV01 Equivalent Change ($) |
TU | 4,082,718 | 4,055,267 | +27,451 | +1,029,377 |
FV | 6,610,905 | 6,564,338 | +46,567 | +2,006,269 |
TY | 4,750,260 | 4,736,828 | +13,432 | +864,735 |
UXY | 2,245,126 | 2,241,506 | +3,620 | +316,782 |
US | 1,805,490 | 1,809,274 | -3,784 | -472,463 |
WN | 1,884,648 | 1,870,137 | +14,511 | +2,660,525 |
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| Total | +101,797 | +6,405,225 |
EGB SYNDICATION: Austria triple tranche mandate
"The REPUBLIC OF AUSTRIA has mandated Barclays, Citi, Deutsche Bank, Goldman Sachs Bank Europe SE, J.P. Morgan and Raiffeisen Bank International to lead manage its upcoming triple-tranche issuance consisting of a tap of its RAGB 2.5% Oct 2029 (ISIN AT0000A3EPP2), a tap of its RAGB 3.2% Jul 2039 (ISIN AT0000A3D3Q8) and a tap of its RAGB 3.15% Oct 2053 (ISIN AT0000A33SK7)."
"The transaction is expected to be launched and priced in the near future, subject to market conditions."
From market source
- We had noted the possibility of this in April in our EGB Issuance, Redemption and Cash Flow Matrix last week.
- We look for a total transaction size of E5-7bln.
OUTLOOK: Price Signal Summary - Trend Needle In Bunds Points North
- In the FI space, Bund futures continue to trade at their recent highs. A bull cycle remains in play and the pullback between Apr 7 - 9 is considered corrective. A fresh S/T cycle high on Apr 7 reinforces a bullish theme. The contract has recently cleared 131.14, 76.4% of the Feb 28 - Mar 11 bear leg. This opens 132.56 next, the Feb 28 high. Firm support lies at 130.14, the 20-day EMA.
- A sharp sell-off in Gilt futures between Apr 7 - 9 continues to highlight a bearish threat and recent gains are considered corrective - for now. The contract has recently breached 90.55, the Mar 27 low. Clearance of this level confirms a full reversal of the Mar 27 - Apr 7 rally. Sights are on the 90.00 handle next, briefly pierced on Apr 9. A clear break of it would open key support at 88.96, the Jan 13 low (cont). Initial resistance is 92.63, Apr 8 high.
