RUSSIA: Lavrov-New Round Of Ukraine Talks To Be Announced "In Very Near Future"

May-28 08:45

State-run Tass reports Foreign Minister Sergey Lavrov saying that Russia will confirm the dates of the next round of direct talks with Ukraine on reaching a ceasefire "in the very near future," Speaking in Moscow, Lavrov says "At these negotiations on May 16 in Istanbul, when they resumed, we insisted on the abolition of all these discriminatory laws and will continue to do so in the next round of direct negotiations," Lavrov also confirmed that "A neutral and nuclear-free status for Ukraine is one of Russia's key demands.

  • Both Ukraine and the United States are awaiting a formal memorandum outlining Russia's demands for enacting any ceasefire. While both Kyiv and Washington, D.C., wait, Russia continues to make advances in the Sumy region of northeastern Ukraine. This sits across the border from the Kursk oblast of Russia, which was for some time occupied by Ukrainian forces.
  • On 27 May, Ukrainian President Volodymyr Zelenskyy warned that some 50k Russian troops were massing along the border with the Sumy region. Last week, Russian President Vladimir Putin spoke of establishing "buffer zones" along the border. Zelenskyy claimed that the Russian troops were some of Moscow's "largest, strongest forces".
  • Russia launching a summer offensive and forgoing ceasefire talks could draw a robust response from the US. While isolationists within the Trump administration have sought to pull back from any further commitments to Ukraine's defence, the president's recent comments regarding Russian attacks could suggest secondary/banking sanctions on Russia are not unfeasible. 

 

Historical bullets

EGB SYNDICATION: France 3.00% Jun-49 Green OAT tap mandate

Apr-28 08:38

"As considered in the 2025 State financing programme published in December 2024, Agence France Trésor announces the syndicated increase of the Green OAT 3.00% 25 June 2049 to be launched in the near future, subject to market conditions. Joint Lead Managers will be Barclays, BNP Paribas, BofA Securities, Crédit Agricole CIB, HSBC and Natixis. All primary dealers will be invited to participate in the syndicate."

MNI pencils in a E4-8bln transaction size (a bit more uncertain than usual given it's a tap).

SONIA: Call fly seller

Apr-28 08:35

SFIM5 95.75/95.85/95.95c fly, sold at 2.5 down to 2.25 in 6k.

FOREX: FX OPTION EXPIRY

Apr-28 08:27

Of note:

USDJPY 2.5bn at 144.00 (tue).

USDCAD 1.7bn at 1.3800/1.3825 (tue).

EURUSD 2.45bn at 1.1375/1.1395 (wed).

  • EURUSD: 1.1250 (2.56bn), 1.1300 (220mln), 1.1400 (410mln).
  • USDCAD: 1.3905 (225mln).
  • AUDUSD: 0.6390 (391mln).

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