EU FINANCIALS: Swedbank - New Issue - €450 4.75Y Sr Pref - Final Terms

Looking a bit closer at the state-level German CPI March data released this morning, core and services inflation appear to have slowed, while for goods the data points towards broadly a stable Y/Y rate, if not a slight uptick. Overall, analysts' expectations ahead of the release appear to have broadly materialized in March; these were for deceleration in the (key) services category (on the back of both lower momentum as well as base effects) .

• Looking at the categories with heavy services weighting, we see decelerations in education (4.7% Y/Y from 5.0% February), restaurants and hotels (3.9% from 4.2%), and recreation and culture (1.0% from 1.1%). For communication as well as healthcare, meanwhile, we see some slight acceleration vs last month (-1.1% from -1.2%, and 3.0% from 2.8%, respectively).
• The mixed-weighting (across services and goods) transport category meanwhile saw the most pronounced deceleration in its Y/Y rate - to around 0.9% to 1.0% from 2.4% in February. This is as energy (broadly -3.0% to -2.5%, based on only ~50% of basket weighting data, from -1.6% Feb) and travel services likely acted in tandem here - ahead of the release, the so-called Easter effect was expected to materially drag airline price growth down in comparison to last month.
• Food inflation (incl. non-alcoholic beverages) meanwhile seems to have accelerated notably - to 3.4 to 3.5% Y/Y from February's 2.8%.
• Categories associated with the core goods sector appear also firmer than before - we see clothing and footwear around 1.2-1.3% Y/Y (0.5% Feb) and Furnishings and Household Equipment around -0.24% Y/Y (-0.7% Feb).

• 5,000 SFRU5/SFRZ5 95.62/95.87 put spd spds, 0.0 net from 0611-0621ET.
• Ongoing interest in SOFR put spd spds after SFRU5/SFRZ5 95.68/95.81 put spd spd and SFRJ5/SFRM5 95.87/95.93 put spd spd bought last week.
• Otherwise, SOFR option flow has rotated around low delta call structures over the last few sessions.

OI data suggests that net long setting in FV and UXY futures comfortably outweighed net short cover in TU, TY, US & WN futures during Friday’s rally.