EUROZONE T-BILL ISSUANCE: W/C 5 May, 2025
Italy is still due to sell bills this week while Germany, France, Spain, Belgium, the Netherlands, the ESM and the EU have already come to the market. We expect issuance to be E33.8bln in first round operations, up from E17.0bln last week.
To conclude issuance for the week on tomorrow morning, Italy will come to the market with E8.5bln of the new 12-month May 14, 2026 BOT.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
GOLD: Gold Up in Asian Trading as Equities Stabilise
- In US trading overnight, gold fell for the third day straight yet as equity markets in the region showed some positive signs, gold improved also.
- Opening at US$2,983.28, gold added small gains today to reach $3,004.22.
- *Despite reassurances from Trump officials to investors that the tariff plan won't derail the economy, there remains little appetite for risk in most asset classes.
- Despite the reassurances, Trump then threated with upping the tariffs on China.
- *With the arbitrage in pricing between the US and UK over, the flow of physical gold into London resumed in March with an increase for the first time in five months.
- Yesterday, in China's FX Reserves release, the Central Bank provided details on the growth of gold held by the PBOC, as it rose for a fifth consecutive month.
JGBS: Bear-Steepener Extends After Poor 30Y Auction
JGB futures remain sharply weaker, -104 compared to settlement levels, although off session lows.
- “Japan selected its economic revitalization minister Ryosei Akazawa to lead tariff negotiations with the US as it scrambles to seek a reprieve from the Trump administration, according to Chief Cabinet Secretary Yoshimasa Hayashi.” (per BBG)
- Cash US tsys are showing a bull-steepener, with benchmark yields 1-5bps lower. US economic data remains light today. Markets are looking ahead to Wednesday's release of March FOMC minutes, followed by CPI data on Thursday and PPI on Friday.
- Cash JGBs are 5-19bps cheaper, with a steeper curve, after today’s lacklustre 30-year auction.
- The 30-year bond auction delivered disappointing results. The low price came in at 99.00, falling short of dealer expectations at 100.00 (Bloomberg poll). The cover ratio declined to 2.9582x from 3.4997x, while the auction tail widened significantly to 0.75 — the largest since 2023 — up from just 0.12 previously, all pointing to noticeably weaker demand.
- Swap rates are flat to 4bps higher, with swap spreads tighter.
- Tomorrow, the local calendar will see Consumer Confidence and Machine Tool Orders data alongside BoJ Rinban Operations covering 1-3-year and 5-25-year JGBs.
- BoJ Governor Ueda will also give a speech at the Trust Companies Conference.
EURGBP TECHS: Holding On To Its Gains
- RES 4: 0.8645 High Apr 23 ‘24
- RES 3: 0.8625 High Aug 8 ‘24
- RES 2: 0.8604 1.382 proj of the Mar 3 - 11 - 28 price swing
- RES 1: 0.8593 High Aug 14 ‘24
- PRICE: 0.8584 @ 06:23 BST Apr 8
- SUP 1: 0.8470/0.8397 Low Apr 7 / 20-day EMA
- SUP 2: 0.8316 Low Mar 28 and a key near-term support
- SUP 3: 0.8299 Low Mar 5
- SUP 4: 0.8251 Low Mar 4
EURGBP maintains a bullish tone and the cross is holding on to its latest gains. A key resistance at 0.8474, the Jan 20 high, has been cleared. The breach of this hurdle highlights an important technical break and strengthens a bullish condition. Sights are 0.8593 next, the Aug 14 ‘24 high. On the downside, firm support lies at 0.8397, the 20-day EMA. The cross is overbought, a pullback would allow this condition to unwind.
