IRAN: Lawmaker-Snapback Sanctions 'Tired Scarecrow'; Raises NPT Withdrawal

Very weak Bund auction on the Aug-54 line with a 1.03x bid-to-cover and 0.79x bid-to-offer. The low price achieved at the auction was also lower than the pre-auction midprice.

• The 1.03x bid-to-cover is the lowest seen since 2018 in the German 30-year segment.
• The line is seeing some contained weakness, printing 85.440 vs 85.560 right before the auction.
• The Aug-46 line fared better, with solid demand metrics and the low price achieved at the auction above the pre-auction mid.
• Bund futures came off the highs past the auction.

RXU5/RXV5 129.5c spread, bought the Oct for 20.5 in 5k.

• Spread set earlier at MS + 29bp (guidance was MS + 31bps area)
• Size: E4bln (MNI expected E3bln but noted upsizing to E4bln was possible)
• Books in excess of E33bln (inc E2.25bln JLM interest)
• Maturity: 15 April 2032
• Coupon: Short first
• Settlement: 28 August 2025 (T+6)
• ISIN: FI4000591862
• Bookrunners: Barclays (DM/B&D) / Bofa Securities / Danske Bank / Deutsche Bank / J.P. Morgan
• Timing: Allocations and pricing to follow