EURIBOR OPTIONS: Put spread buyer

New 5Y Fixed Dec-28

• Spread set at MS+4bp, guidance had been MS+6 Area
• Size set at E5bln
• Books in excess of E50bln (including E4.75bln JLM interest)
• Coupon: Annual, act/act ICMA, long first
• UOP: Conventional bond
• ISIN: EU000A3K4EN5

Tap of EU 2.625% Feb-48

• Spread set at MS+72bp, guidance had been MS+74 Area
• Size set at E3bln
• Books in excess of E60bln (including E2.525bln JLM interest)
• Coupon: 2.625%, annual, act/act ICMA
• Format: Green bond
• Fungibility: Immediately fungible
• UOP: Green bond loan, Under the NGEU green bond framework
• ISIN: EU000A3K4DM9

JLMs: Barclays / BNPP (DM/B&D) / LBBW / MS / Nordea

• Books to close at 09.30 UKT / 10.30 CET - Allocations and pricing later today
• Settlement: Nov. 21, 2023
• -From market source

Gilts extend their recovery from session lows, with participants probably looking more to the softening (but still elevated) private services excluding bonus wage data than the headline AWE including bonus data (which was skewed by one-off public sector bonuses and comfortably topped exp.).

• A bid in wider core global FI markets will also be helping.
• Gilt futures trade just shy of the peak of their ~45 tick range, last +30 or so, with well-defined technical parameters remaining some distance from prevailing prices, leaving a short-term bullish set up in play.
• Cash gilt yields are ~2bp softer across the curve.
• SONIA futures are unchanged to 4bp firmer through the blues, with a light flattening bias seen.
• BoE-dated OIS sits little changed to 3bp softer.
• The modest, early hawkish adjustment in STIRs has been more than reversed as the totality of the wage data is digested.