REFINING: PBF Martinez Still Repairing Fire Damage

BNP (19th Dec) 76/60ps, sold at 6.1 in 2.5k.

• As noted earlier, Eurozone STIR markets have reversed the hawkish reaction seen on yesterday’s Bloomberg ECB sources piece, aided in part by the Washington Post’s report on potential for 20% tariffs as part of broader concerns ahead of tomorrow’s reciprocal tariffs announcement.   
• Yesterday’s hawkish reaction helped stop what had been a modest rise in 5Y5Y inflation swaps (~2bps to 2.125%), although currently at ~2.10% they have reversed that climb along with today’s rates rally.
• It leaves 5Y5Y inflation swaps at what would be the lowest close since the Mar 4 German and EU fiscal announcements, having been at 2.05-2.075% in the days shortly beforehand.
• Those fiscal plans saw idiosyncratic adjustments in EU long-term inflation swaps, narrowing the US-EUR spread from levels closer to 40bps to 16bp on Mar 5. Daily gyrations have more recently shifted back to seeing greater correlation with those in the US though, with a US-EU spread at 30bps +/- 3bps over the past week and a half. 

ERZ5 98.0625/98.25cs vs 97.75p, bought the cs for 2 in 10.5k vs 3.99k at 98.075.