CHILE: January Activity Data Beats Across The Board, CLP Strengthens
Feb-29 12:18
- Data just published showed broad strength, with manufacturing production, industrial production and retail sales all showing strong beats of the median surveyed estimates. This sets the stage for tomorrow’s economic activity (Imacec) data, where growth is expected to rise 0.3% m/m, which should translate to an annual pick up to +0.1% Y/y.
- The data is supporting the Chilean peso in early trade, which has notably been on a firmer footing this week. Bolstering the most recent recovery has been the return of USD sales from the finance ministry. Hacienda has sold $100 mil on both Tuesday and Wednesday, taking the total of USD sales to $300 mil for February. JPMorgan said earlier in the week that "while USD sales by the treasury are unlikely to materially alter the CLP trajectory, they represent a risk factor for CLP shorts given current levels and positioning by foreign investors."
- In local news, the government expects to lay out by March the broad terms of lithium contracts to be offered under a new public-private partnership model, Mining Minister Aurora Williams told reporters on Wednesday.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
OUTLOOK: Price Signal Summary - Gilts Test Resistance
Jan-30 12:14
- In the FI space, Bund futures traded higher earlier. Recent gains suggest that the bull cycle is likely to extend. The move higher does undermine the recent bearish theme and price has traded above the 20-day EMA, at 134.91. A continuation higher would expose 136.16, the Jan 5 / 8 high where a break would strengthen a bullish theme. For bears, a move below 133.55, the Jan 25 low, is required to reinstate a bearish theme.
- The trend needle in Gilt futures continues to point south and recent gains appear - for now - to be a correction. The contract has cleared support at 99.60, the Jan 5 low. This confirmed a resumption of the downtrend that started Dec 27, signalling scope for a continuation lower towards 97.39, the Dec 11 low. Firm resistance to watch is 99.39, the 20-day EMA. It has been pierced, a clear break of the average would ease bearish pressure and open 100.00.
CROSS ASSET: MONTH END EXTENSIONS
Jan-30 12:13
Bloomberg Bonds:
- US Tsys: +0.06yr (small).
- EU Govies: +0.09yr (ok).
- UK Govies: +0.21yr (large, huge).
MS Bonds:
- US Tsys: +0.05yr (small).
- EU Govies: +0.04yr (small).
- UK Govies; +0.19yr (large, huge).
Barcap FX:
- Their model indicates a weak Dollar selling signal against most majors.
- They see mild USD selling across the board.
- They see weak USD sell signal.
EGB SYNDICATION: Greece 10-year: Launched
Jan-30 12:07
- Size: E4bln (MNI expected at least E3.0-3.5bln with potential to upsize)
- Books closed in excess of E35bln (inc E1.425bln JLM interest)
- Spread set previously at MS+80bps (guidance was MS+85bps area)
- Maturity: 15 June 2034
- Settlement: 6 February 2024 (T+5)
- Coupon: Annual, ACT/ACT, short first coupon
- Bookrunners: Alpha Bank / Barclays / Citi / Commerzbank / Nomura (B&D/DM)/ Societe Generale
- ISIN: GR0124040743
- Timing: Allocations and pricing later today
From market source
