SPAIN AUCTION RESULTS: Top Of Range Sold; But Results Mixed
Apr-10 08:50
Top of the range sold at that Spanish auction (E6.457bln vs E5.5-6.5bln target), with mixed results across lines.
- The 3.50% May-29 Bono results were relatively weak. The bid-to-cover ratio of 1.12x was lower than all 10 previous auctions for this line going back to October 2023. Meanwhile, the lowest accepted price of 103.960 was below the 103.963 pre-auction mid-price. The secondary market price for this Bono has nonetheless moved up to ~104.000 at typing, though.
- The on-the-run 3.15% Apr-35 Obli saw better results, with the bid-to-cover ratio of 1.90x exceeding last month’s 1.54x. However, only E1.970bln of this bond was sold today compared to E3.189bln in March. The low price of 98.280 comfortably exceeded the 98.158 pre-auction mid price.
- Today was the first re-opening of the 2.55% Oct-32 Obli since February 2023. The bid-to-cover of 1.83x was in line with that prior re-opening.
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EQUITIES: Estoxx Put Spread
Mar-11 08:45
SX5E (17th April) 5100/4900ps, bought for 21.3 in 4k.
CNH: SocGen Recommend Switching Longs In USD/CNH To EUR/CNH
Mar-11 08:44
Societe Generale prefer “to switch from a long position in USD/CNH to EUR/CNH in anticipation of further positive surprises for the euro resulting from fiscal expansion and a potential peace deal between Russia and Ukraine”.
- They also note that “there are strong signals that U.S. economic exceptionalism is receding, with the euro taking the lead in this tectonic shift. While an underwhelming Chinese NPC provided no shock and awe from fiscal and monetary”.
- The recommendation came with EUR/CNH trading at 7.8740, with a target of 8.1900 and a stop loss at 7.7200.
FOREX: FX Exchange traded Roll Pace
Mar-11 08:30
Expect FX exchange traded roll to pick up this Week, should be all done by Friday ahead of the Expiry next Monday (17th March).
ROLL PACE:
- EUR: 24%.
- GBP: 26%.
- JPY: 35% (above pace).
- CHF: 22%.
- CAD: 15% (below pace).
- AUD: 22%.
- NZD: 27% (above pace).
- SEK: 38% (above pace).
- NOK: 27%.
