OIL: Latest Sanctions Not Impacting Russian Oil Output: Novak

• Price action last week saw EURCHF break notably below 0.9300, a support level that has broadly been respected over the last six months. Spot has subsequently narrowed the gap to a crucial cluster of support between 0.9206-22, with Friday's 0.9219 print further strengthening the significance of this area from a technical viewpoint. Clearance of the lows would place EURCHF at its lowest since the peg removal in 2015.
• Domestically in Switzerland, last week's SECO forecasts would be consistent with an SNB policy rate of 0% for the foreseeable future. In real, trade weighted terms, the Franc stands only around 0.7% below the April highs. Clearance of these highs could prompt the SNB to harden their language on the Franc once again, having maintained their usual currency rhetoric in recent months that they remain “willing to be active in the foreign exchange market as necessary".
• This brings particular focus on the inaugural edition of the SNB meeting minutes, which will be published this Thursday. In the minutes, alongside any view on FX valuations, we will look for more insight on whether Chairman Schlegel's non-mention of side effects of potential negative rates in his September opening remarks was a dovish or hawkish policy signal.
• Société Générale write today they "remain in wait-and-see mode" but that "there is merit in […] the safe -haven qualities of the CHF, relative to the EUR and GBP".
• Given the illiquidity back in 2015, support levels below 0.9200 are hard to pin-point. Fibonacci projection levels would place immediate attention on 0.9099 and 0.9032. USDCHF cycle lows at 0.7829 remain the key medium-term support level for the pair.

• Secured Overnight Financing Rate (SOFR): 4.18% (-0.12), volume: $3.022T
• Broad General Collateral Rate (BGCR): 4.16% (-0.09), volume: $1.180T
• Tri-Party General Collateral Rate (TCR): 4.16% (-0.09), volume: $1.145T
• (rate, volume levels reflect prior session)

"*MANDATE: KINGDOM OF SWEDEN $BENCHMARK 1/2028 BOND OFFERING" Bloomberg

"*NEW DEAL: SWEDEN $BENCHMARK JAN. 2028 BOND SOFR MS+30 AREA" Bloomberg

• This is the second foreign currency syndication of the year. In June, Sweden sold E2bln (~SEK21.8bln) of the 2.00% Jun-28 Sweden EUR bond.
• Riksgalden's May borrowing report noted that "the Debt Office will issue two foreign currency bonds in 2025 instead of one. The two loans together correspond to around SEK 39 billion. In keeping with the plan from November, we are also planning a loan in 2026 corresponding to approximately SEK 19 billion".
• With the EUR sale earlier this year raising almost SEK22bln, a transaction size totalling USD1.75-2.00bln (i.e.around SEK16.5 - SEK19bln) seems reasonable.
• A reminder that Riksgalden's November borrowing report, which will have to account for the Government’s expansionary 2026 budget plans, will be released in late November.