CHILE: President Boric Meets With UN Secretary General, BCCh Minutes Tomorrow
Sep-25 11:36
- The Chilean peso traded on the backfoot yesterday, amid broad gains for the US dollar, although the move was capped by a strong bounce in copper prices due to supply concerns. USDCLP closed just 0.4% higher at 953, leaving the pair broadly unchanged on the week. Today, the pair has opened marginally lower, amid a more stable dollar backdrop.
- From a technical perspective, the recent breach of key support at 949.84, the Aug 13 low, undermines the medium-term bullish theme for USDCLP, with scope seen for a move towards the 940.00 handle. On the upside, initial firm resistance to watch is 958.51, the 20-day EMA, a break of which would be a bullish development.
- Today, President Boric is due to meet with UN Secretary-General Antonio Guterres in New York at 1630BST(1130ET). Separately, centre-right presidential election candidate Evelyn Matthei will give a live interview on TVN at 0200BST(2100ET). Matthei is currently tracking third in the polls, behind hard right candidate Jose Antonio Kast and left-wing candidate Jeanette Jara.
- No macro data are due, with focus for the rest of this week on tomorrow’s BCCh minutes for the Sep 9 MPC meeting. At that meeting, the central bank left the policy rate unchanged at 4.75%, while striking a more hawkish tone amid persistent core CPI inflation pressures. The minutes will be watched for further clues on the timing of the next rate cut, which analysts currently expect to be delivered in December.
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OUTLOOK: Price Signal Summary - Gilt Bear Remain In The Driver's Seat
Aug-26 11:30
- In the FI space, Bund futures are unchanged and remain above their recent lows. A bear threat is present. The contract recently breached 128.84, the Jul 25 low. Note that 129.00 represents the base of a broad range. A clear range breakout would strengthen a bearish theme. This would open 128.40 initially, the Apr 9 low. Strength above the 50-day EMA of 129.80, is required to signal a reversal. Resistance at the 20-day EMA is at 129.51.
- A bear cycle in Gilt futures remains in play. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a clear downtrend - for now. First support to watch is 90.31, the Aug 22 low. It has been pierced, a clear break would resume the bear leg and open the 90.00 handle. Initial resistance is at 91.24, the Aug 18 high.
EGB SYNDICATION: Austria New 7-Year RAGB: Allocations Out
Aug-26 11:19
- E3bln WNG (excl. E250mln issuer retention) of the new 7-year Sep-32 RAGB
- Spread set earlier at MS+30 (guidance was MS+33 area)
- Books closed in excess of EUR 19bn, including EUR 1.8bn JLM interest
- Format: Reg S, Bearer, 144A eligible, CAC
- Settlement: 02 September 2025 (T+5)
- Maturity: 20 September 2032 (7Y)
- Coupon: TBD, Fixed, Ann., ACT/ACT (Long 1st to 20 September 2026)
- ISIN: AT0000A3NY15
- Bookrunners: BofA / DB(DM/B&D) / Erste Group / HSBC / JPM / Raiffeisen Bank International
- DB=DM/B&D. HR 103% vs DBR 1.7 08/15/32
- Hedge deadline 13.40CET / 12.40UKT
From market source
ESM ISSUANCE: USD2bln WNG New 5-Year: Mandate
Aug-26 11:14
- USD2bln WNG of the new 5-year Sep-30 ESM-Bond
- IPT: MS + 42 bps area (equiv. to CT5 + ~7.3bp)
- Issuer: European Stability Mechanism (TICKER: ESM)
- Issuer Ratings: Aaa (stable) (Moody's) / AAA (stable) (S&P) / AAA (stable) (Fitch)/ AAA (stable) (Scope)
- Format: Registered Notes, Reg S (NSS) / 144A
- Ranking: Senior, Unsecured, Unsubordinated
- Settlement: 4 September 2025 (T+6 (TARGET) / T+5 (NY))
- Maturity Date: 4 September 2030 (5Y)
- Coupon: Fixed, Semi-annual, 30/360, Following, Unadjusted
- Bookrunners: CACIB(DM/B&D) / DB / JPM
- Timing: Taking IOIs today, expect to price tomorrow
From market source.
USD3bln of an ESM USD Bond will mature on September 10. That line was a 5-year issue also initially.
