EU FINANCIALS: L&G: FV (Benchmark 30NC10 Tier 2)
Aug-28 09:27
Exp. Issue Ratings: A3 (hyb)/BBB+ (Moody’s/Fitch)
#MNI #Financials LGEN
- IPT given at MS+210a. Books >€2bn.
- In GBP, LGEN 6.625% 55s were issued as 30NC10s
- This line sits broadly in line with the 6.125% 54s also issued as a 30NC10
- In EUR, we note the AVLN 4.625% 56s issued as 31.25-NC11.2 sits at Z+174.
- This implies a FV around Z+165bps for the new L&G.
- We add 5bps given a new debut for EUR market to record our FV at Z+170.
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SONIA OPTIONS: More Sonia Call Spread buyers
Jul-29 09:25
- SFIX5 96.60/96.70cs, bought for 0.75 in 5k.
- SFIZ5 96.65/96.75cs, was bought earlier for 0.75 in 10k.
Call spread buyers has been the dominant Sonia Option structures this morning.
ITALY T-BILL AUCTION RESULTS: 6-Month BOT
Jul-29 09:11
| Type | 6-month BOT |
| Maturity | Jan 30, 2026 |
| Amount | E6.5bln |
| Target | E6.5bln |
| Previous | E1.5bln |
| Avg yield | 1.993% |
| Previous | 1.950% |
| Bid-to-cover | 1.48x |
| Previous | 1.64x |
GILT AUCTION RESULTS: Another strong 3-year gilt auction
Jul-29 09:07
- Another strong 3-year gilt auction for the 4.375% Mar-28 gilt.
- The tail of 0.2bp was a little wider than the previous auction's 0.1bp but still very tight while the lowest accepted price (LAP) of 101.057 is higher than any other time of the day (excluding the first 10 minutes of trading).
- The price of the 4.375% Mar-28 gilt is still trading below that of the LAP at the time of writing but is moving higher. Gilt futures have shown little movement despite the strong result.
