PERU: Real GDP Rises 3.9% Y/y In Q1, As Expected

2.50% Oct-29 RAGB (ISIN: AT0000A3EPP2)

• Spread set earlier at MS + 19bp (guidance was MS+20 Area)
• Size: E3bln (inc E500mln retention)
• Books closed in excess of E16.7bln (inc E1.525bln JLM interest)

3.20% Jul-39 RAGB (ISIN: AT0000A3D3Q8)

• Spread set earlier at MS + 66bp (guidance was MS+67 Area)
• Size: E2.25bln (inc E250mln retention)
• Books closedin excess of E22.9bln (inc E1.25bln JLM interest)

3.15% Oct-53 RAGB (ISIN: AT0000A33SK7)

• Spread set earlier at MS + 97bp (guidance was MS+98 Area)
• Size: E1.75bln (inc E250mln retention)
• Books in excess of E23.2bln (inc E1.65bln JLM interest)

For all:

• Settlement: April 30, 2025 (T+5)
• Bookrunners: Barclays (B&D), Citi, DB, GS, JPM, Raiffeisen Bank
• Timing: Allocations and pricing to follow

From market source

• Pill talks through the history of QT with active sales originally being delayed in 2022. He says: "It does illustrate, first, that, yes, you are right to point out there could be state dependent, state contingent effects. I think we've seen those, but we've built into our framework the possibility for dealing with that. Because I think monetary policy, by nature, is a bit more of a medium term oriented looking through the sort of ups and downs of markets at high frequency. And I think our system has taken that into account. And just to give an example, this isn't what I would overweight, but you'll be very aware of this is it was only a few weeks ago that actually the Bank of England decided to switch from selling longer term bonds to selling shorter term bonds at a time when markets were a little bit febrile, given recent events. Now, I wouldn't say that was a big monetary policy choice that was quite a tactical approach to dealing with these types of dislocations, and I think that maybe at the margin helped to calm markets, although, of course, there are bigger forces at work now. The global storm you see is perhaps driving those dislocations in markets more than our own actions. So I think it does illustrate that we are alive to the potential and able to deal with it."
• Pill says he's not going to formally comment on Bank Rate as the forecast round is under way.

• We note the focus on Fedspeak today (although, as we wrote earlier, the ‘opening remarks’-heavy nature of today’s speaking schedule could limit content and all speakers have spoken recently), but Treasury Secretary Bessent's appearance at the IIF today could also carry weight.
• He's set to be delivering keynote remarks and will "share his thoughts on the state of the global financial system". He will then hold a sit-down conversation with the IIF president. His remarks begin at 1000ET/1500BST and can be livestreamed here: https://vimeo.com/event/5054312/12805a306f
• His appearance follow closed-door remarks at an investor conference yesterday, where he supposedly said he sees de-escalation with China, with the current trade situation "unsustainable".
• The softer tone on China (backed up later by Trump) followed a meeting in the Oval Office between POTUS and the CEOs of Walmart, Target and Home Depot, who warned the President "that his tariff and trade policy could disrupt supply chains, raise prices and empty shelves", according to Axios.