US TSYS/SUPPLY: Preview 20Y Bond Auction

• Date $MM Issuer (Priced *, Launch #)
• 04/20 $2B #Truist Financial $1B each: 6NC5 +83, 11NC10 +103
• 04/20 $1.5B #Schwab PerpNC5 6.1%
• 04/20 $1B Tokyo 5Y SOFR+67a
• 04/20 $1B Mineral Resources 6NC2.5 6%a, 8NC3 6.25%a
• 04/20 $750M #Liberty Mutual Group 10Y +105
• 04/20 $500M #Rentokil Terminix WNG 5Y +90
• 04/20 $500M ATI Worldwide 8NC3
• 04/20 $Benchmark Prologis 5Y +57, 10Y +80
• 04/20 $Benchmark Edge Compute 5NC2 investor calls
• 04/20 $Benchmark Kazakhstan 5Y, 10Y investor calls

US President Donald Trump's approval rating on inflation has hit a new low, according Silver Bulletin's polling aggregator. Trump's dip in approval on inflation has come amid a slight uptick in approval in his handling of immigration, likely reflecting a decrease in negative press since the removal of former DHS Secretary Kristi Noem. 

• CBS News/YouGov reported last week: "Americans continue to note higher gas prices. Ratings of the nation's economy remain low, and when asked what's most shaping their views on it, gas prices are an even bigger factor than earlier this year." CBS noted that, "includes a slight drop among Republicans for his handling of inflation, specifically. For context, among Republicans, that approval is 20 points lower than how they rate him on immigration."
• Overall, a slide in Trump's approval rating - correlated with the start of the Iran war - appears to have stabilised. According to RealClearPolling, Trump's approval rating has been in the net -15.5% range since March 25.

Figure 1: Donald Trump Approval Rating on Issues

Source: Silver Bulletin

• The Swiss Franc has firmed on Monday, extending a recent reversal higher in real, trade-weighted terms after the currency fell in March amid more forceful SNB language on FX valuations. For EURCHF, spot has now fallen around 100 pips from recovery highs, with the 0.9260/65 area providing very solid resistance in recent weeks.
• Today’s move also takes us back below the 0.9210 pivot and through both the 20- and 50-day EMAs, bolstering the short-term bearish sentiment. 0.9124 may soon come into focus, the 50.0% retracement of the March 9 - 31 upswing. In the crosses, CHFJPY is once again approaching record highs, which reside just above the 204 mark.
• There has been a notable pickup in bullish Franc views. Most recently, Société Générale recommend "short EUR/CHF again, around here. A sharp widening in rate differentials, in the euro’s favour, has provided support for the cross, but in the past, this has been temporary. We see no reason to expect a different outcome this time" [...] and MUFG are "maintaining a short GBPCHF trade recommendation".
• Goldman Sachs flagged in early April that they see a building case for a reversal lower in EURCHF, while last week, Bank of America said CHF's "fortunes depend on escalation risks or if $ debasement theme is returning. Latter would be CHF supportive".