SCHATZ: Swap related Trade

• E3bln WNG (excl. E250mln issuer retention) of the new 7-year Sep-32 RAGB
• Spread set earlier at MS+30 (guidance was MS+33 area)
• Books closed in excess of EUR 19bn, including EUR 1.8bn JLM interest
• Format: Reg S, Bearer, 144A eligible, CAC
• Settlement: 02 September 2025 (T+5)
• Maturity: 20 September 2032 (7Y)
• Coupon: TBD, Fixed, Ann., ACT/ACT (Long 1st to 20 September 2026)
• ISIN: AT0000A3NY15
• Bookrunners: BofA / DB(DM/B&D) / Erste Group / HSBC / JPM / Raiffeisen Bank International
• Timing: Launched. Allocations to follow. DB=DM/B&D

From market source

• Volatility in currency markets Tuesday was stoked by President Trump declaring he was firing Federal Reserve governor Lisa Cook “effective immediately”, in an escalation of the US president’s attacks on the central bank. The immediate impact was dollar negative, with USDJPY bearing the brunt of the move, depreciating around 90 pips in the aftermath.
• This allowed USDJPY to trade down to 147.00, reversing much of Monday’s ascent. However, weakness was short-lived as the dollar began to reverse on potential safe haven demand, while Governor Cook stating that she will not resign and will continue to carry out her duties may have also exacerbated the dollar’s full intra-day reversal.
• FX futures volumes are healthy - likely a result of the catch-up after the UK bank holiday on Monday: GBP, JPY futures see volumes of 40%-80% above average, but EUR futures are the standout: heavy trade through Asia-Pac saw total activity over double what might be expected in at this stage of the trading day.
• Overall, the dollar index’s resilience to start the week has seen the majority of Powell's dovish JH inspired selloff reverse. Activity is also backed up by WSJ's overnight report that China have sent a "senior" trade negotiator to the US - a likely signal that a trade deal can be reached that could unlock a Trump-Xi Jinping summit in the near future.
• While the EURUSD’s fall this week is reflective of broader greenback themes, political uncertainty has also ratcheted up following French Prime Minister Francois Bayrou’s plan to call a confidence vote. The trend set-up in EURUSD remains bullish and short-term weakness is for now considered corrective. Support at the 50-day EMA remains intact, at 1.1597. A clear break of it would signal scope for a deeper retracement and potentially expose key support at 1.1392, the Aug 1 low.
• US durable goods, consumer confidence and Richmond manufacturing data are all due later in the session. ECB’s Villeroy, BOE’s Mann and BOC Governor Macklem are all due to speak.