EU UTILITIES: UTILITIES: TenneT (TENN A3/A-/NR): German Implications
Nov-08 10:04
- With this week’s German coalition collapse, questions arise once again around the future of TenneT’s German grid assets. To recap, while both the Dutch and German governments would prefer to see those assets under Germany’s control, Germany was unable to complete the proposed transaction due to budget constraints.
- The prospect of a new government raises uncertainty on debt and energy policies, although the deficit has deteriorated since talks collapsed.
- While the removal of Lindner as German Finance Minister increases the odds of a debt break tweak, all else equal, our political risk team currently views the odds of a move on this front as slim, given the likely make up of government after elections.
- We would not expect much immediate impact for TenneT, but tail risks have increased and it will be important to keep an eye on developments from here.
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OPTIONS: Larger FX Option Pipeline
Oct-09 09:50
- EUR/USD: Oct11 $1.0500(E4.0bln), $1.1000(E2.5bln), $1.1045-50(E1.6bln)
- USD/JPY: Oct10 Y149.80-00($1.5bln); Oct14 Y149.00($1.5bln)
- AUD/USD: Oct10 $0.6760-75(A$1.1bln); Oct11 $0.6885-00($1.1bln)
- USD/CAD: Oct10 C$1.3595-00($1.1bln), C$1.3650($1.0bln); Oct11 C$1.3600($1.1bln); Oct14 C$1.3345($1.1bln)
GERMAN AUCTION RESULTS: 0% May-36 Bund / 2.60% May-41 Bund
Oct-09 09:34
| 0% May-36 Bund | 2.60% May-41 Bund | |
| ISIN | DE0001102549 | DE000BU2F009 |
| Total sold | E500mln | E1bln |
| Allotted | E408mln | E846mln |
| Previous | E0.457bln | E0.818bln |
| Avg yield | 2.34% | 2.52% |
| Previous | 2.60% | 2.50% |
| Bid-to-offer | 3.98x | 2.76x |
| Previous | 3.45x | 2.24x |
| Bid-to-cover | 4.87x | 3.27x |
| Previous | 3.77x | 2.73x |
| Avg price | 76.46 | 101.05 |
| Low price | 76.46 | 101.04 |
| Pre-auction mid | 76.386 | 100.989 |
| Prev avg price | 73.81 | 101.31 |
| Prev low price | 73.80 | 101.29 |
| Prev mid-price | 73.753 | 101.249 |
| Previous date | 10-Jul-24 | 04-Sep-24 |
EQUITIES: Edging back towards flat
Oct-09 09:31
- The US Emini is recovering slowly back towards flat on the day, Estoxx took the lead and VGZ4 is now flat on the day.
- Focus in Equities is still on the other side of the Pond and the record high in the Emini at 5830.00, printed on the 26th September, but has failed to break that hurdle throughout October.
