PRECIOUS METALS: Silver Favoured Over Gold in Low Vol, Fading USD Environment

• Size: E4.5bln inc E0.5bln retained by issuer (MNI expects E4-6bln)
• Books closed in excess of E47bln (inc E3.595bln JLM interest)
• Spread set earlier: 2.50% Aug-54 Bund + 2.5bp (mid) (guidance was +3.25bp area)
• HR: 109% vs 2.50% Aug-54 Bund
• Settlement: May 13, 2025 (T+5)
• ISIN: DE000BU2D012
• Bookrunners: Barclays, Citi (B&D), CA-CIB, DZ Bank, GS, JPM. Remaining members of the Bund Issues Auction Group will be invited into the co-lead group
• Timing: Hedge deadline 12:30BST / 13:30CET. Allocations and pricing to follow.

From market source

• SFIK5 95.80/95.90/96.00/96.10c condor sold at 6 in 5k.
• SFIM5 96.00/96.15/96.30/96.45c condor, sold at 3.75 in 7.5k

• On the commodity front, Gold has recovered from its recent lows and this suggests the correction between Apr 22 - May 1, is over. A continuation higher would refocus attention on key resistance and the bull trigger at $3500.1, the Apr 22 high. Clearance of this level would confirm a resumption of the primary uptrend. Key short-term support has been defined at $3202.0, the May 1 low. A break of this level is required to signal scope for a deeper retracement. First support to watch is $3252.1, the 20-day EMA.
• In the oil space, a medium-term bearish trend in WTI futures remains intact and short-term gains are considered corrective. The move down that started Apr 23 signals the end of the correction between Apr 9 - 23. That cycle higher allowed an oversold condition to unwind. Attention is on $54.67, the Apr 9 low and a bear trigger. Clearance of this level would resume the downtrend and open $53.72, a 2.236 projection of the Feb 20 - Mar 5 - Apr 2 price swing. Resistance to watch is $64.32, the 50-day EMA.