EM ASIA CREDIT: MNI EM Credit Market Update - Asia

EUREX ROLL PACE: Volumes are starting to pick up now, especially in Bobl.

• Buxl: 30%.
• Bund: 23%.
• Bobl: 32%.
• Schatz: 27%.
• BTP: 15% (below pace).
• BTS: 21%.
• OAT: 26%.

In tandem with the step lower in GBP/USD at the open, the USD is rallying against all others - benefiting from the pretty aggressive move in longer-end yields. US 30y yields are within range of 5.0% for the first time since mid-July and that, compounded by the slippage in equities, is driving the USD here.

• As a result, GBP/USD is narrowing in on the Friday low, EUR/USD is through yesterday's lows and USD/JPY is closing in on clustered resistance between Y148.78-88, marking the Aug22 high and the 200-dma respectively.
• Move most observable against JPY and GBP here, with the impact of Gilt weakness and widening US-JN yield spreads making themselves be felt most keenly. UK DMP output price expectations data and retail sales could prove illustrative this week - but it's UK politics that will likely provide the clearer medium-term driver, as 30 year yields hit levels not seen in over 25 years today - pressuring the government headed into the Autumn budget - the date for which is yet to be set.

New 7-year Nov-32 BTP:

• Guidance: BTPS+10 Area. Benchmark: BTPS 3.25% 07/15/32
• Size: Benchmark. MNI pencils in E5-10bln (with risks skewed towards E7-8bln)
• Coupon: Semi-annual, act/act, short first

New 30-year Oct-55 BTP:

• Guidance: BTPS+9 Area. Benchmark: BTPS 4.3% 10/01/54
• Size: E5bln WNG.
• Coupon: Semi-annual, act/act, short first

Across both lines:

• Issuer: Italy Buoni Poliennali Del Tesoro (BTPS)
• Exp. Ratings: Baa3/BBB+/BBB
• Format: Reg S, dematerialized, 144A eligible
• Settlement: Sep 9, 2025 (t+5)
• Denoms: 1k x 1k
• Bookrunners: BBVA, Citi, DB (B&D), JPM, MS, Nomura
• Timing: May price today.

As per Bloomberg and MEF, with MNI colour added.