EM LATAM CREDIT: Panama: EU Designates Country Compliant - Neutral
(PANAMA; Baa3neg/BBB-/BB+)
"Panama Removed From European Union’s List of High-Risk Regimes" - Bbg
We posted June 12th about the EU Commission's recommendation to remove Panama from a list of high risk of money laundering and terrorist financing countries: https://mni.marketnews.com/467pe8d
The Panamanian Ministry of Foreign Affairs published a statement that the European parliament approved the measure according to Bloomberg.
Last year a similar recommendation was made but voted down by parliament due to maritime issues which Panama then took steps to fix so apparently those measures were sufficient to finally get approval.
The news is positive from a reputational standpoint though there are more pressing issues that dominate the direction of the credit profile such as the fiscal situation and the potential reopening of the copper mine.
PANAMA 2035s were last quoted T+232bp, 70bp tighter since March 31 and 82bp tighter YTD.
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BTP: Block trades
BTP Block trades, suggest sellers:
- IKU5 ~1.72k at 121.23 and ~1.4k at 121.19.
GILT TECHS: (U5) Bull Cycle Extension
- RES 4: 93.26 1.500 proj of the May 22 - 27 - 29 price swing
- RES 3: 93.05 1.382 proj of the May 22 - 27 - 29 price swing
- RES 2: 93.00 Round number resistance
- RES 1: 92.87 Intraday high
- PRICE: 92.83 @ Close Jun 10
- SUP 1: 92.33/91.56 Intraday low / Low Jun 9
- SUP 2: 91.16/90.59 Low Jun 2 / Low May 29
- SUP 3: 90.11 Low May 22 and the bear trigger
- SUP 4: 90.00 Round number support
Gilt futures have resumed their short-term uptrend and this strengthens the current bullish theme, marking an extension of the breach of resistance at 91.87, the May 20 high. The climb signals scope for a continuation higher and sights are on the 93.00 handle next. Initial firm support to watch lies at 91.56, the Jun 9 low. A clear break of this level is required to signal a possible reversal.
SOFR OPTIONS: Morning Update: Carry-Over Midcurve Put Tree
- 1,700 0QM5/0QN5 96.75 call spds
- +2,500 SFRZ5 95.62/96.00 1.25 over 0QZ5 96.12/96.50 put spds
- Update, +18,000 0QV5 95.87/96.12/96.37 put trees, 4.25-4.5 ref 96.64 to -.62 (adds to appr +25k yesterday from 3.5-4.25)
