HYBRIDS: TenneT: Consortium to invest in German Grid

• The USD is the strongest G10 currency in European trading as North Americans start to get to their desks but moves have been rather limited on the whole.
• The BBDXY index is 0.14% higher on the day but still down over 0.6% relative to pre-Powell Jackson Hole levels. The Scandies are underperforming this morning.
• The main scheduled event of the day has passed without even as the German IFO was broadly in line with expectations.
• We will hear from the Fed's Logan but not until 20:15BST (and it is unclear whether she will speak on monetary policy).
• It will be the second half of the week that we will see the main economic releases of the week with the second estimate of US Q2 GDP due Thursday. Friday will be a very busy data day with Tokyo CPI and flash HICP releases from France, Spain, Italy and Germany as well as July PCE from the US and Q2 GDP from Canada.
• Outside of G10 FX, USDCNH has seen more notable moves with the USDCNY fixing at the lowest level since early November and our Asia team noting that CNH was also helped by China property related equities have been buoyed on headlines of easing Shanghai home buying curbs. See our technical analysts' views above as the cross approaches key support.

"The REPUBLIC OF AUSTRIA has mandated BofA Securities, Deutsche Bank, Erste Group, HSBC, J.P. Morgan and Raiffeisen Bank International to lead manage its upcoming new 7Y EUR 3 billion (Will Not Grow) RAGB benchmark with a maturity date of 20 September 2032. The transaction is expected to be launched and priced in the near future, subject to market conditions."
From market source

• We had flagged the possibility of an Austrian syndication this week in the MNI EGB Issuance, Redemption and Cash Flow Matrix and had been close with the maturity (we had expected a long 6-year rather than the 7-year announced).

• Bund futures drifted lower in pre-European trading before falling a further 10 ticks around 8:00BST this morning. This reversed all of the gains seen following Fed Chair Powell's Jackson Hole appearance. Lagarde's comments at the symposium had no real impact on short-term monetary policy.
• The moves in futures have seen 10-year Bund cash yields increase 3.4bp on the day with a slight steepening of the curve.
• The day's major data was the German IFO release which came in broadly in line with expectations (89.0 vs 88.8 consensus, 88.6 prior) but the details showed the uptick was on shaky ground while markets showed no reaction to the data release.
• Later today we will receive Belgian business confidence data. However, it is later in the week that the data calendar gets much busier with the most notable releases being French, Spanish, German and Italian flash HICP all due (as well as US GDP on Thursday and PCE on Friday).
• The EU-bond auction was well received and saw E5.525bln sold across the 3 lines on offer (against a maximum E6.0bln target) with each line showing the stop price above the pre-auction mid-price. We still have a 8/9/30-year OLO auction due.
• With the UK bank holiday today (closing UK fixed income and equity markets) volumes are expected to remain on the light side today.