EM CEEMEA CREDIT: National Bank of Ras Ak-Khaimah: LAUNCH PNC6 $300mnWNG AT1

Tesoro Publico has announced it will be looking to sell a combined E4.5-5.5bln of the following Bonos/Obli at its auction this Thursday, June 5:

• the 2.40% May-28 Bono (ISIN: ES0000012O59)
• the 2.70% Jan-30 Bono (ISIN: ES0000012O00)
• the 0.70% Apr-32 Obli (ISIN: ES0000012K20)

Tesoro Publico has also announced it will be looking to sell E0.25-0.75bln of the 2.05% Nov-39 Obli-Ei (ISIN: ES0000012M69) that auction.

Additionally, Tesoro Publico has announced it will be looking to sell a combined E5.0-6.0bln of the following letras at its auction tomorrow, June 3:

• the 6-month Dec 5, 2025 letras
• the new 12-month Jun 5, 2026 letras
   

• Despite dented risk sentiment to start the week, the prevailing theme of USD weakness has provided AUDUSD with a 0.85% boost to start the week. Spot received support in the low 0.6400s last week keeping bullish trend signals intact.
• A continuation higher would open 0.6550, a Fibonacci retracement, and the November 25 high. Above here, the key medium-term focus is on the US election related highs at 0.6688.
• Westpac recently wrote they still see merit in sticking patiently with a core AUDUSD long, looking for an eventual break beyond the 0.6500/15 area on a 1-3mth horizon. Westpac believe the outlook still favours an appreciation profile for the pair, albeit one that is a choppy, low- intensity grind, with the USD doing most of the leg work driving periodic discrete bullish resetting of ranges.
• Notably, CFTC Data shows asset managers pared back their shorts ever so slightly, however, the leveraged community added to their shorts quite aggressively over the week.
• We have a busy calendar this week in Australia, with the RBA minutes, first quarter GDP and April trade balance data the highlights. The RBA is likely to deliver two more 25bp cuts this year coinciding with updated forecast publications, former staffers recently told MNI, arguing that the RBA’s concerns over labour market tightness means that the market’s expectation for the cash rate to reach 3.1% by Dec was likely overblown.

Bund futures have retraced around 50% of the selloff since the EGB cash open, now -21 ticks at 131.00 after reaching a session low of 130.72 earlier. No obvious trigger for the broader reversal in core FI over the past few hours, with NY desks seemingly opting to fade this morning’s weakness as the US session gets underway.

• The passing of this morning’s triple-line EU-bond auction at 1030BST will have removed an additional intraday headwind to Bunds, but the recovery is still notable given Brent Crude futures have continued to extend session highs.
• The German 2s10s curve remains up almost 2bp versus Friday’s close at 74bps, but additional steepening since the cash open has now unwound.