EUROZONE ISSUANCE: EGB Supply - W/C 17 Feb (2/2)
Feb-14 16:43
- On Wednesday, Germany will return to the market to sell E4.5bln of the 10-year 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- On Thursday, Spain will hold a Bono/Obli auction. On offer will be the on-the-run 2.40% May-28 Bono (ISIN: ES0000012O59) and the 2.70% Jan-30 Bono (ISIN: ES0000012O00) alongside the 3.55% Oct-33 Obli (ISIN: ES0000012L78). The size will be announced on Monday.
- Also on Thursday, France will hold a MT OAT auction selling a combined E11.5-13.5bln. The new 3-year 2.40% Sep-28 OAT (ISIN: FR001400XLW2), the 0% Nov-29 OAT (ISIN: FR0013451507) and the on-the-run 5-year 2.75% Feb-30 OAT (ISIN: FR001400PM68) will be on offer.
- The launch of the new 2.40% Sep-28 OAT at the upcoming week's MT OAT auction was in line with our expectations.
- The auction size represents another step up - the E13.5bln at the top of the target range would represent another record for a French auction if achieved. Previously the largest auction has been E13.0bln (which we have seen in the other three French auctions this year.)
- Later on Thursday, France will return to hold a IL OAT auction to issue a combined E1.50-2.25bln. the 0.10% Jul-31 OATei (ISIN: FR0014001N38). The 0.10% Jul-36 OATei (ISIN: FR0013327491), the 0.95% Jul-43 OATei (ISIN: FR001400QCA1) and the 0.10% Mar-32 OATi (ISIN: FR0014003N51) will be on offer.
NOMINAL FLOWS: The upcoming week sees redemptions of E38.7bln of which E30.5bln are from a formerly 10-year Bund, E6.0bln from a formerly 7-year EFSF bond and E2.2bln from a formerly 7-year Greek GGB. Coupon payments for the week total E5.7bln of which E2.5bln are German, E1.4bln are Austrian, E0.7bln are Italian, E0.6bln are Portuguese and E0.2bln are Irish. This leaves estimated net flows for the week at negative E3.8bln, vs positive E50.5bln this week.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
BOE: Taylor on the UK neutral rate: Between 2-3%
Jan-15 16:40
- "In my view, this level of a UK terminal rate makes sense as it sits somewhere between the Fed’s terminal rate (around 3%, as suggested by the Fed’s dot plot, or around 1% in real terms) and the ECB’s (around 2%, as suggested by Philip Lane in an interview, with reference to ECB, for a range of measures around 0% in real terms) which would be consistent with the recent historical pattern and with the UK having growth and demographic fundamentals somewhere in between the US and Eurozone."
US TSY FUTURES: BLOCK: Mar'25 5Y/30Y Ultra Bond Steepener
Jan-15 16:39
Latest Block post at 1117:40ET:
- +15,933 FVH5 105-31.25 post time offer vs.
- -3,648 WNH5 117-02, well through 117-07 post time bid
BOE: Taylor talks of risks both ways
Jan-15 16:37
- "If we were to misjudge, or be too late to recognise if this case 1 possibility were developing as the true scenario, then we would be using case 2 policies in a case 1 world"
- "We could end up with case 1 policies in a case 2 world, for example. And the risk of case 3 still isn’t necessarily zero either, so the Bank needs to be extremely alert to all real-time and forward-looking signals to get a clear read."
