EM CEEMEA CREDIT: SHJGOV: new issue EUR 7Y
Feb-06 09:47
Fin Dept Govt of Sharjah (SHJGOV; Ba1/BBB-/)
New issue deal: EUR500mn WNG 7Y benchmark
IPT @ MS+275bp area
FV @ z+230bp
- SHJGOV is tapping the primary market in EURs, building up on the existing SHJGOV 4.625 31 that charts @ z+223bp (issued @ MS+190bp in Jul ’24). Whilst this EUR denominated bond acts as our anchor point for FV estimates, we also look at x-ccy z-spreads to gather more granular comps.
- We see some 5bp pick up for extending from Jan ‘31 to Feb ’32 based on similar tenors on the SHJGOV USD curve. We add only a couple of bp for NIP vs seasoned (see chart below).
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
SPAIN T-BILL AUCTION RESULTS: 6/12-month letras
Jan-07 09:41
| Type | 6-month letras | 12-month letras |
| Maturity | Jul 4, 2025 | Jan 9, 2026 |
| Amount | E2.026bln | E4.179bln |
| Target | E5.5-6.5bln | Shared |
| Previous | E1.984bln | E2.8bln |
| Avg yield | 2.535% | 2.367% |
| Previous | 2.552% | 2.207% |
| Bid-to-cover | 1.75x | 1.37x |
| Previous | 1.71x | 1.86x |
| Previous date | Dec 03, 2024 | Dec 03, 2024 |
GILTS: 30-Year Gilt Yields Hit Highest Since '98
Jan-07 09:36
30-Year gilt yields hit the highest level seen since ’98, printing 5.211%.
- 5.25% presents the next logical upside target.
- Very old (1998) broken support on the monthly chart, located at 5.255%, could also act as resistance.
- Fiscal/issuance risks a key driver here, while a tentative/cautious BoE cutting cycle and stickier inflation factor into higher yields across the curve.
- Presence of today's 30-Year supply also a factor intraday
- Higher yields increase the risks to Chancellor Reeves already limited fiscal headroom, boosting odds of further tax hikes (which would act as a growth impediment).
Fig. 1: UK 30-Year Gilt Yield
Source: MNI - Market News/Bloomberg
EGB SYNDICATION: Belgium 10-year: Spread set
Jan-07 09:34
- Spread set at MS+66bps (guidance was +68bps area)
- Size: EUR Benchmark (MNI expect E7bln with upside risks)
- Books in excess of E67bln (ex JLM interest)
- Maturity: 22-June-2035
- Settlement: 14-January-2025 (T+5)
- Coupon: Annual ACT/ACT, short first to 22-June-2025
- ISIN: BE0000363722
- Bookrunners: BNPP (DM/B&D) / CACIB / HSBC / JPM / MS
- Timing: Books to close at 10:00GMT / 11:00CET; open, today's business
From market source
Trending Top
Dec-05 15:48
