EU FINANCIALS: Pricoa (PRU) Global € B'mark 5y FA Backed - FV
Jun-26 09:21
- IPT: MS+105a
- FV: MS+75
- In USD FA Backed market Pru (AA3/AA-/AA-) trades just wide of NYLIFE (Aa1/AA+/AAA) and very marginally inside MET (AA3/AA-/AA-) and inside PACLIF, especially at the longer end.
- PRU 4.7% 2030 USD bond trades Z+76 when swapped into EUR.
- Recent relatively new EUR FA backed issues have come wide of the existing secondary - highlighted with black borders in chart. These all priced 20bps inside IPT.
- As such we think a 5 year around Z+75 is FV given USD pricing, but we would expect the bonds to come at MS+85area today and only grind in slowly. The aforementioned newly issued EUR FA backed bonds are currently only marginally inside where they priced.
- Exp Ratings: Aa3/AA-/AA-
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ITALY AUCTION RESULTS: BTP Short Term / BTPei
May-27 09:16
| 2.55% Feb-27 BTP Short Term | 1.25% Sep-32 BTPei | 1.80% May-36 BTPei | |
| ISIN | IT0005633794 | IT0005138828 | IT0005588881 |
| Amount | E2.75bln | E1bln | E1bln |
| Previous | E3bln | E600mln | E1.5bln |
| Avg yield | 2.01% | 1.24% | 1.90% |
| Previous | 2.00% | 0.38% | 1.90% |
| Bid-to-cover | 1.61x | 1.57x | 1.59x |
| Previous | 1.65x | 2.82x | 1.61x |
| Avg Price | 100.93 | 100.10 | 99.06 |
| Pre-auction mid | 100.913 | 100.023 | 98.977 |
| Prev avg price | 101.00 | 110.70 | 99.08 |
| Prev mid-price | 100.982 | 99.005 | |
| Previous date | 24-Apr-25 | 25-Feb-20 | 25-Feb-25 |
AUSTRIA T-BILL AUCTION RESULTS: 2-Month RATB / 3-month Green RATB
May-27 09:09
| Type | 2-month RATB | 3-month Green RATB |
| Maturity | Jul 24, 2025 | Aug 28, 2025 |
| Allotted | E793mln | E1.747bln |
| Previous | E780mln | E1.696bln |
| Amount | E1bln | E2bln |
| Target | E1bln | E2bln |
| Previous | E1bln | E2bln |
| Avg yield | 1.990% | 1.925% |
| Previous | 2.110% | 2.310% |
| Bid-to-cover | 1.86x | 1.86x |
| Previous | 1.69x | 1.9x |
| Bid-to-offer | 1.48x | 1.62x |
| Previous | 1.32x | 1.61x |
| Previous date | Apr 22, 2025 | Feb 25, 2025 |
JPY: Fresh broader lows for the Yen
May-27 09:08
- The Yen continues to print fresh broader lows, the USDJPY has now gained 142 pips taking its cue from the fall in long JGB Yield since the MOF source story on possibly reducing Bond issuance in the longer-end.
- Next stop would see Friday's high at 144.14, but better will be seen at the 144.40/144.49 area, respectively Thursday's high and 20 day EMA.
