HUNGARY: Szijjarto Warns of Risks of Reliance on Single Crude Pipeline
Oct-10 07:26
- Minister of Foreign Affairs and Trade Peter Szijjarto said on Friday that relying on a single pipeline for the delivery of crude can cause "enormous problems." "It is clear the kind of problems that can result if a country is supplied by a single crude pipeline, from Croatia," Szijjarto said, warning that Hungary had to avoid such a situation. He pointed out that Hungary gets crude through the Druzhba pipeline from Russia as well as Croatia's Adria pipeline.
- The Fiscal Council highlighted the impact of the war in Ukraine, geopolitical tensions and high tariff levels on Hungary's economic growth in an assessment of budget trends issued on Thursday. In the biannual opinion, the Council acknowledged that household consumption, real wage growth and government measures boosting net income supported economic expansion, but they put GDP growth under 1pc for 2025.
- No major economic releases are scheduled for today.
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BUNDS: Futures Pierce Recent Highs
Sep-10 07:23
There was a technical element to the rally in Bund futures during the cross-asset vol. noted earlier, with the contract trading through the Sep 8 high (129.33), topping out at 129.44, just ahead of the Aug 5 high (129.50). A break above the latter would allow the recent bullish cycle to develop further.
- Contract eases back to 129.30 as cross-asset impetus subsides (detailed in recent bullet).
- German yields are 0.5-2.0bp lower, curve bull flattens.
EGB SYNDICATION: Luxembourg New 10-Year: Guidance
Sep-10 07:18
- EUR Benchmark of the new Sep-35 LGB (MNI pencil in a transaction size of E1.00-1.75bln)
- Guidance: MS+35bps area
- Issuer: GRAND DUCHY OF LUXEMBOURG (ticker: LGB)
- Ratings: Aaa/AAA/AAA (all stable)
- Format: RegS Bearer, Senior, Unsecured
- Coupon: Annual, ACT/ACT
- Size: EUR Benchmark
- Maturity: 17-September-2035
- Settlement: 17-September-2025 (T+5)
- ISIN: LU3182454440
- Bookrunners: BofA / BCEE / CACIB / DB / SG (B&D)
- Denoms: €1k+1k
- Target market: The target market for the Bonds is professionals, retail and eligible counterparties (all channels for distribution), each as defined in MIFID II/UK MiFIR.
- Timing: Books open, today's business
Per market source
CROSS ASSET: Move Fades
Sep-10 07:16
The knee-jerk USD bid fades from extremes as Euro Stoxx 50 futures recover back towards session highs after weakness around the cash equity open.
- Our best guess is that the USD bid stemmed from yield differentials moving in the USD’s favour on spillover from the weakness in European stocks.
- Volume was decent on the move, with ~38K Bund futures trading in a 10-minute window.
