OIL PRODUCTS: Singapore Oil Inventories Fall to Lowest Since July

The BoJ are said to see a chance of a rate hike this year, despite politics, according to a Bloomberg sources report. The piece writes that the Bank are said to see rates likely unchanged in September, but they see steady progress toward the bank's price target and the US trade deal has removed some risks to growth.  

• BoJ pricing sees the next hike not fully priced until March next year (assuming a 25bps rate rise) so this would be a hawkish development. Current OIS run of BoJ pricing:
• Sept 19th: No change priced
  Oct 30th: +7bps
  Dec 19th: +13bps
  Jan 23rd: +21bps
  Mar 19th: +24bps
• On specific meetings, it looks like the October decision could be in play, but isn't the unified view: "Some officials are even of the view that a hike might be appropriate as early as October, according to some of the people." JPY has gained on the report, but no new session lows for USD/JPY: price slips to 146.87 before rebounding and steadying slightly.

5-year

• Spread set at MS + 22bp (guidance was MS + 24bps area)
• Tranche Size Set: E5bln
• Books in excess of E70bln (inc E4.5bln JLM interest)
• Maturity: 14 October 2030
• ISIN: EU000A4EG021

30-year

• Spread set at MS + 119bp (guidance was MS + 121bps area
• Tranche Size: E6bln (increased from E5bln, MNI had noted the potential to increase)
• Books in excess of E98bln (inc E6.85bln JLM interest)
• Maturity: 12 October 2055
• ISIN: EU000A4EG039

For both:

• Settlement: 16 September 2025 (T+5)
• Coupon: Long first
• JLMs: Barclays / BofA / CACIB / LBBW / MS (B&D/DM)
• Timing: Books to close at 9:45BST / 10:45CET

From market source / MNI colour