CAPITAL GOODS: Traton (TRAGR Baa2[P]/BBB/NR): 1Q25 Prelims

• Spread set at 0.125% Aug-48 linker (GB00BZ13DV40) + 1.0bp (Guidance was +1.0/1.5bps)
• Size: GBP5.0bln (larger than the GBP4.0-4.5bln MNI expected) - MNI note: This is the largest ever gilt linker syndication
• Books in excess of GBP67.5bln (inc JLM interest of GBP4bln) - MNI note: That is the largest ever book for a gilt linker syndication
• Maturity: 22 September 2049
• ISIN: GB00BT7J0134
• Coupon: 1.875%, long first
• Settlement: 12 March 2025 (T+1)
• JLMs: BofA Securities, J.P. Morgan, Lloyds Bank Corporate Markets (B&D/DM), and UBS Investment Bank
• Timing: Books closed, pricing later today

From market source / MNI colour

• In the equity space, a bear threat in S&P E-Minis remains present and Monday’s extension strengthens bearish conditions. The move down also reinforces the significance of the breach of 5809.00, the Jan 13 low. This level marked the mid-point of a double top on the daily chart and the break confirms the pattern and an important short-term reversal. Sights are on 5499.25, the Sep 9 2024 low. Firm resistance to watch is 5979.06, the 50-day EMA. First resistance is  5791.00, the Mar 7 high.
• The trend in the EUROSTOXX 50 futures contract is unchanged, it remains bullish and the latest pullback appears corrective. Support at the 50-day EMA, at 5309.38, remains intact for now. Note that moving average studies are in a bull-mode position, highlighting a dominant uptrend.  However, a clear break of the 50-day EMA would signal a possible reversal. A resumption of gains would refocus attention on the 5600.00.

SX7E (19th Dec) 110/80ps 1x2, bought for 0.40 in 6k.