BASIC INDUSTRIES: Heidelberg Materials (HEIGR): 1Q25 Results Headlines
May-08 06:43
"*HEIDELBERG MATERIALS 1Q OPER EBITDA EU557M, EST. EU526.6M" "*Heidelberg Materials Backs 2025 View...
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BONDS: Focus on how long-end supply is digested
Apr-08 06:41
- Given the steepening in yield curves globally there is an increased focus on the long-end and there are a number of events to watch over the coming days.
- Overnight we saw very poor demand metrics for a 30-year JGB auction. Our Asia team noted that the low price came in at 100.00, falling short of dealer expectations according to a Bloomberg poll. The cover ratio declined to 2.96x from 3.50x, while the auction tail widened significantly to 0.75 - the largest since 2023 - up from just 0.12 previously, all pointing to noticeably weaker demand.
- Today the EU is due to tap the 2.50% Oct-52 EU-bond as part of a dual-tranche syndication while the UK is due to hold a 30-year 4.375% Jul-54 gilt auction this morning. Both will be watched to see if there is any recovery in long-end demand and we note in particular that we will be watching how much of a concession we get going into that 30-year gilt auction.
- This all comes ahead of Thursday when we will see a 30-year UST auction. This does seem an eternity away at the moment given the fast paced nature of negotiations headlines and markets, but it will come around soon enough.
- Given the global integrated nature of the curve steepening, we think it is worth watching any long-end demand metrics at present.
CHINA: Country Wrap: State Funds to buy Stocks
Apr-08 06:35
- News that China's state backed funds are planning to step in to buy markets and stabilize things gave bourses a boost today as the likelihood of policy intervention grows. Key state owned fund China Reform Holdings said it will invest $10bn in shares to support the market. (source: MNI – Market News)
- Of the 27 Chinese cities that logged a gross domestic product of over CNY1 trillion (USD136.8 billion) last year, industrial production increased by more in 19 of them compared with the national level in the first two months of the year. The industrial output of enterprises above the designated size, which refers to those with an annual revenue of at least CNY20 million (USD2.7 million), in Xi'an, Hefei, and Yantai rose 16.4 percent, 13.4 percent, and 10.2 percent, respectively, in January and February from a year earlier, according to official figures. (source Yicai)
- China's major bourses all rallied today with the Hang Seng better by +0.35%, CSI 300 +0.60%, Shanghai +0.50% and Shenzhen the outlier down -0.25%.
- CNY: Yuan Reference Rate at 7.2038 Per USD; Estimate 7.3297
- Bonds: a giveback in bonds today with the CGB 10YR higher by +1.5bp to 1.65%
BUNDS: A Volatile but lighter Overnight session for Bund
Apr-08 06:30
- While Bund saw a fairly volatile Overnight session (51 ticks range), volumes have been on the lower side, just compared to the last heavy sessions, the contract has been mostly been quoted 2 ticks wide, helping exacerbate the wide range.
- Tariffs headlines will continue to drive multi cross assets, Trump has threatened another 50% on China, which would bring the rate above 100% Yesterday.
- Small support in Bund is at 129.62, followed by the 129.02 gap.
- Resistance moves down to 130.36, followed by 130.91 initially.
- There are no Tier 1 Data for today, US Wholesales Inventory will be final reading.
- SUPPLY: Netherlands 2032 (would equate to 14.6k Bund) won't impact the contract, UK 2.25bn 2054 (equates to 32.7k Gilt) will weigh, Germany €3bn green Bund (equates to 29.4k Bund) could weigh, US sells $58bn of 3yr notes.
- SYNDICATION: EU is due to hold 2.50% Oct-52.
- SPEAKERS: ECB Guindos, Holzmann, Cipollone, BoE Lombardelli, Fed Daly.
