EM CEEMEA CREDIT: YapiKredit: New Issue PNC5.5 AT1 - FV

Goldman Sachs note that “despite the previous week’s inflationary speed bump, the UK curve outperformed last week, as soggy activity data insulated gilts from bearish price action in other markets. This muted spillover points to the continuing calming in UK-specific risk premium that had been a feature of UK macro assets in recent years. As inflation risk subsides, the half-life of bouts of gilt volatility seems to be shrinking”.

• They go on to suggest that gilts should “get additional support as the BoE slows the pace of QT from October onwards. Although the pace of active sales picks up in our forecasts, we expect the BoE to skew away from long-end sales. As a result, we maintain our constructive GBP vs EUR rates and continue to recommend long SFIZ6 vs. ERZ6”.

SX5E (15th Aug) 4900p, bought for 4.70 in ~8.4k.

TY Weekly Option, Friday NFP Expiry:

• TY 111p, bought for '22 in ~5.11k.