EGBS: Citi Recommend Short 10-Year OATs Vs. Bunds & BTPs On Fly

EUR Benchmark 10Y Fixed (Aug. 1, 2035) BTPS+9 Area

• Coupon: Semi-annual, act/act, short first
• UOP: General purposes
• See security information: 10Y Fixed

EU5b WNG 20Y Green Fixed (April 30, 2046) BTPS+8 Area

• Coupon: Semi-annual, act/act, short first
• Format: Green bond
• UOP: In accordance with Italy’s Framework for the Issuance of Sovereign Green Bonds
• See security information: 20Y Fixed
• Issuer: Italy Buoni Poliennali Del Tesoro (BTPS)
• Ratings: Baa3/BBB/BBB
• Format: Reg S, dematerialized, senior unsecured, 144a eligible, CAC
• Settlement: Jan. 15, 2025
• Denoms: 1k x 1k
• Bookrunners: SIENA, BNPP (B&D), Citi, CA-CIB, NatWest Markets, UniCredit

(As per Bloomberg).

New 10-year BTP:

• Tranche size: EUR Benchmark (MNI expects E10bln)
• Guidance: 3.85% Feb-35 BTP +9Bps Area
• Maturity: 1 August 2035
• Coupon: Semi-annual, act/act, short first

New 20-year Green BTP:

• Tranche size: E5bln (WNG)
• Guidance: 4.45% Sep-43 BTP +8bps Area
• Maturity: 30 April 2046
• Coupon: Semi-annual, act/act, short first

For both:

• Settlement: 15 January, 2025 (T+5)
• Bookrunners: SIENA, BNPP (B&D), Citi, CA-CIB, NatWest Markets, UniCredit
• Timing: May price today

Details as per Bloomberg

• US Treasuries are seeing a pick up in volumes to the sell side, getting dragged lower by Europe.
• The Dollar is finding a broader bid on the follow, with US Yield elevatged overall, EUR, GBP fell to their respective lows against the Greenback.
• Main focus target in the 10yr Yield is at 4.7351%, the 2024 high, while in G10 FX, the Dollar has pared some of its overnight losse to edge in the green against most G10.