UTILITIES: Snam (SRGIM Baa2/A-[N]/BBB+): 1Q25 Results Headlines

• In similar vein to its antipodean counterpart, NZD bounced well overnight amid the recovery for risk sentiment. Yesterday’s low ~0.5510 for NZDUSD matched closely with the 2022 lows, increasing the significance of this area of technical support.
• Overall, the latest developments have prompted moving average studies to move into a bear mode position, underpinning the bearish momentum for NZDUSD. Downside was exacerbated on a break back below a short-term pivot at 0.5711 on Friday, which now provides resistance for the pair.
• SocGen believe that latest developments re Japan and China support the idea that tariffs could be lowered as deals are made. They say that long AUD/NZD appeals if as expected the RBNZ remains dovish and cuts rates again overnight.
• A 25bp rate cut is unanimously expected, bringing the OCR to 3.50%. Data have remained soft but still signal a gradual recovery and so the MPC is likely to ease in line with its February guidance, while maintaining its easing bias. RBNZ dated OIS is pricing a cumulative 98bps by November 2025. Our preview of the RBNZ meeting is here: https://mni.marketnews.com/3RF3qIF

2.625% Jul-28 EU-bond (EU000A4D5QM6)

• Spread earlier set at MS+14bps (Guidance was MS+15 bps area)
• Size confirmed at E5bln (MNI had expected E4-6bln)
• Books closed in excess of E41bln (in E5.5bln JLM interest)
• HR 106% vs 2.40% Apr-28 Bobl

2.50% Oct-52 EU-bond (EU000A3K4DT4)

• Spread set at MS+126bps (Guidance was MS+128 bps area
• Size: E3bln versus guidance of E2bln (MNI had expected E4-6bln)
• Books closed in excess of E45bln (in E5bln JLM interest)
• HR 119% vs 0% Aug-52 Bund

For both:

• Settlement: 15 April 2025 (T+5)
• Bookrunners: BNP Paribas, Deutsche Bank, J.P. Morgan, Natixis and Nomura
• Timing: Hedge deadline 12:25BST / 13:25CET. Pricing to follow

From market source

SX7E (17th Apr) 155/150ps vs 171c, bought the ps for 0.25 in ~7.2k.