IRAN: IAEA Pass Resolution Declaring Iran Non Compliant, Awaits Tehran Response

Jun-12 08:39

The International Atomic Energy Agency (IAEA)'s Board of Governors has passed a resolution declaring Iran in non-compliance with its nuclear safeguarding requirements. This is the first time since 2005 that such a resolution has been passed. In the event, 19 countries voted in favour of the resolution, with three (Burkina Faso, China, and Russia) voting against and 11 abstentions.

  • On 11 June, Iran's envoy to the IAEA Reza Najafi said to AFP that Tehran would show a “very severe reaction” if the resolution passed. The resolution now goes to the UN Security Council, where it may adopt further sanctions. Najafi: “If such a scenario unfolds, Iran’s options will be firm, and the United States and the E3 will bear full responsibility.”
  • Speaking to CNN earlier, IAEA Director General Rafael Grossi said that “the Iran of 10 years ago has nothing, nothing to do with the Iran we see now....At that time the technologies they had was more primitive, they had much less material, less places they were doing enrichment. Now the program has grown."
  • The IAEA resolution comes at a time of already-heightened regional tensions (see 'IRAN: RTRS-Official Claims 'Friendly' Country Warns Of Possible Israeli Attack', 08:42BST). Should Tehran respond by cancelling this Sunday's round of talks with the US, or pulling its future cooperation with the IAEA it could risk Israel launching a unilateral attack on Iran's nuclear sites (with a breakdown in US-Iran talks seen by the Israeli gov't as the threshold for launching strikes). 

 

Historical bullets

BUNDS: German 2s/10s Steepener trades on Block

May-13 08:33
  • RXM5 ~2.8k sold at 129.47.
  • DUM5 ~15.9k bought for 107.11.

US TSY OPTIONS: FVN5 107.00/106.25 Put Spread Blocked Again

May-13 08:31

Block trades lodged at 08:49:53 London/03:49:53 NY:

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EU-BOND SYNDICATION: New 20-year Oct-45 EU-bond: Final terms

May-13 08:16
  • Size: E7bln (upsized from E6bln guidance; MNI had expected E5-9bln)
  • Books in excess of E64bln
  • Spread set at MS+110bp (guidance was MS + 112bps area)
  • Size: E6bln (MNI expected E5-9bln).
  • Coupon: Short first coupon
  • Maturity: 12 October 2045
  • Settlement: 20 May 2025 (T+5)
  • ISIN: EU000A4EA8Y7
  • JLMs: Barclays, Credit Agricole CIB (DM/B&D), LBBW, Morgan Stanley, Nordea
  • Timing: Books to close at 9:45BST / 10:45CET. Allocations and pricing later today
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