EM CEEMEA CREDIT: Yapi Kredi Bank: 3Q 25 Results – NIM growing

Download Full PDF Here

A growing number of EU leaders are voicing their support for mooted EU plans that could see EUR140bln of frozen Russian assets held in the Union utilised as a zero-interest "reparations loan" for Kyiv. The loan would then only have to be repaid once Russia has, in turn, repaid Ukraine for war damage. European Commission President Ursula von der Leyen said in late September that “We will strengthen our own defence industry by ensuring that part of the loan is used for procurement in Europe and with Europe.”

• In a notable boost for the prospect of the reparations loan, German Chancellor Friedrich Merz backed the idea in an FT op-ed. At today's informal meeting of EU leaders in Copenhagen, a number of EU leaders have backed the idea. Latvian PM Evika Silina said, “We have long called for using frozen Russian assets to aid Ukraine.” Finnish PM Petteri Orpo called the plan "a very good idea", while Estonian PM Kristen Michal said the frozen assets should be utilised "as much as possible". Dutch PM Dick Schoof says the proposal "should seriously be considered, as long as risks are covered". 

Both appear to be buys & crossed at same time: 0720:00ET

• +4,800 FVZ5 109-08.25, buy through 109-08 post time offer, DV01 $210,600
• +3,000 TYZ5 112-19, buy through 112-18.5 post time offer, DV01 $203,100

• In the FI space, Bund futures continue to trade above their recent lows. Short-term gains appear corrective. Key support and the bear trigger lies at 127.61, the Sep 3 low. Clearance of this level would cancel a recent bullish theme and confirm a continuation of the medium-term bear cycle. For bulls, a clear reversal higher would refocus attention on key resistance at 129.44, the Sep 10 high. First resistance is 128.84, 61.8% of the Sep 10 - 25 bear leg.
• Gilt futures remain above their latest lows. The move down last week strengthens a bearish theme and does suggest the end of the recent corrective phase between Sep 3 - 11. Note that on the continuation chart, moving average studies are in a bear-mode position, highlighting a dominant downtrend. A resumption of weakness would open 89.94, the 76.4% retracement of the Sep 3 - 11 corrective phase. Initial resistance to watch is 91.28, the Sep 24 high.