POWER: France to Adjust Off-Peak Power Tariffs to Align with Solar Output

• Size set earlier: E1bln (MNI had expected E1.0-1.5bln)
• Spread set earlier at MS+128 (Guidance was MS+140bps area then MS+135bps area)
• Reoffer price 99.10 to yield 3.548%
• Benchmark: DBR 2.5% 08/15/54 +85.1
• Books above EU2.1b (including JLM interest)
• Maturity date: 14 April 2055
• Coupon: 3.5%, annual, act/act, long first
• Issuer: Slovenia Government Bond (SLOREP)
• Settlement: 14 January 2025 (T+5)
• ISIN: SI0002104873
• Joint bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D), and OTP Banka Slovenia
• Timing: 3:20pm London

Details as per Bloomberg and Market Source

• Size set earlier E7bln (in line with MNI expectations and same as 2023/24
  10-year syndis)
• Reoffer price 99.652 to yield 3.141%
• Spread set earlier at MS+66bps (guidance was +68bps area)
• Books closed in excess of E89bln (ex JLM interest)
• Coupon: 3.1%, annual, act/act, short first
• Maturity: 22-June-2035
• HR 103% vs 2.60% Aug-34 Bund
• Settlement: 14-January-2025 (T+5)
• Coupon: Annual ACT/ACT, short first to 22-June-2025
• ISIN: BE0000363722
• Bookrunners: BNPP (DM/B&D) / CACIB / HSBC / JPM / MS

From market source, Bloomberg

U.S. data only having a fairly muted impact on EUR & GBP STIRs, perhaps limited by the already flat rate cutting profile (based on our assumptions) priced into GBP markets and hawkish repricing in EUR STIRs seen in recent weeks.

• The jump in the ISM prices paid component may also result in some cross-market hawkish Fed plays/isolated U.S. hawkish repricing, which would also explain the lack of follow through into EUR & GBP markets.
• ECB-dated OIS pricing ~102bp of cuts through year-end vs. 103.5bp heading into the data, little changed on the day.
• BoE-dated OIS contracts back to little changed on the day, showing 56.5bp of cuts through year-end vs. 58bp heading into the data.