EM CEEMEA CREDIT: TURKEY: Talks on E&P cooperation at govt level

• Reoffer: 98.569 to yield 3.498% (CORRECTED PRICE)
• Issue size: E3bln WNG
• Spread set earlier at MS+92 (guidance was MS+93bps area)
• Books closed in excess of  E15.8bln (incl.E2.115bln JLM interest)
• Reference: 4.75% Jul-40 Bund + 74.2bp ref 124.43 / 2.756%; Hedge ratio 82%
• Maturity: 15-June-2040
• Settlement: 08-May-2025 (T+5)
• Coupon: Fixed, Annual ACT/ACT, long First Coupon (June 15, 2026)
• ISIN: PTOTE4OE0008
• Bookrunners: BBVA/DB/GSBE SE/JPM (DM & B&D)/NovoBanco/Santander
• Timing: TOE 12:58BST / 13:58CET. FTT immediately

From market source

Euribor futures have been dragged higher by SOFR counterparts this afternoon, now flat to +4.5 ticks through the blues. ERZ6 is +3.5 ticks at 98.215, narrowing the gap to resistance at 98.255 (April 22 high).

• European rates have largely looked through today’s flash GDP and April inflation data. Although Q1 GDP was stronger-than-expected at a rounded 0.4% Q/Q (vs 0.2% cons and prior), it was flattered by rounding and tariff-related Irish export frontloading.
• Meanwhile, country-level flash April inflation prints released so far suggest consensus for a 2.1% Y/Y Eurozone-wide headline rate (vs 2.2% prior) remains intact, with risks tilting towards a lower reading.
• Meanwhile, there appear to be upside risks to the 2.5% Y/Y EZ core consensus (vs 2.4% prior), with Easter-timing related effects apparent in Germany and Italy especially. JP Morgan and Goldman Sachs now expect a 2.6% core reading (vs 2.5% initial projection).
• ECB-dated OIS now price 66bps of easing through December, 3bps more dovish on the session.
• A reminder that most of Europe will be closed tomorrow for the Labour Day Holiday. Eurozone-wide flash April inflation is due on Friday, alongside March unemployment (cons 6.1% vs 6.1% prior). 

• US TSY 17W AUCTION: NON-COMP BIDS $736 MLN FROM $60.000 BLN TOTAL