BOE: STR usage GBP96.634bln; balance sheet to be at end September levels
Nov-20 10:45
- STR usage GBP96.634bln up GBP4.631bln from last week's GBP92.003bln - but slightly below the record GBP97.882bln seen 3 weeks ago.
- ILTR usage increased by a net E0.560bln on Tuesday.
- This leaves overall repo balances at GBP158.1bln a record high - which overtakes last week's GBP152.9bln (which had also been a record high).
- We expect this to keep funding market pressures under control as we head into the Budget.
- This also means that the BOE balance sheet is unlikely to have shown any shrinkage since late September. Since 29 September, GBP36.1bln of TFSME repayments were made and GBP4.0bln of APF sales have occurred, but repo operation usage has increased by GBP44.2bln.
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FOREX: EURCHF Respecting Key Medium-Term Support For Now
Oct-21 10:43
- The Swiss Franc has outperformed the G10 basket on Tuesday, potentially underpinned by a rotation of some investors out of the Yen following the Japanese parliament electing Takaichi as the new PM in Japan. Evidence of this is the strong move higher for CHFJPY, which has closely matched the 191.17 all-time highs earlier in the session.
- Weakness for EURCHF today would represent a sixth consecutive losing session. Lows today came within 4 pips of key medium-term support at 0.9206, clearance of which would place EURCHF at its lowest since the peg removal.
- This support level has held for now, with the cross bouncing around 20 pips to 0.9230 as we approach the NY crossover. Projection levels based on the Mar 14 - Apr 11 - Aug 18 price swing would place the next supports at 0.9121 and 0.9017. Resistance is seen at the 20-day EMA, just below the 0.9300 handle.
- As a reminder, the inaugural edition of the SNB meeting minutes will be published this Thursday.
PIPELINE: Corporate Bonds Roundup: World Bank, Sweden, Kazakhstan on Tap
Oct-21 10:42
- Date $MM Issuer (Priced *, Launch #)
- 10/21 $Benchmark World Bank 5Y SOFR+39
- 10/21 $Benchmark Kingdom of Sweden 3Y SOFR+28
- 10/21 $Benchmark ASB Bank 5Y +90a, 5Y SOFR
- 10/21 $Benchmark Oman Electricity 5Y Sukuk
- 10/21 $Benchmark Kazakhstan 5Y +120a
- 10/21 $Benchmark GS Caltex 5Y +115a
- $7B Priced Monday
GILTS: Call Spread buyer
Oct-21 10:37
G Z5 94.50/97.00cs, bought for 23 in 1k.
