RENEWABLES: German Morning Renewable Forecast

More downside Options in the US 10yr, looking for higher Yields

• TYH5 107.50/106.50ps 1x2, bought the 1 for -5 (receive) in 10k.

Earlier this Morning:

• TYG5 107.50p, was bought for '17 in 20k.

EGB spreads to Bunds -1bp to +1bp.

• Equity rally promotes some outperformance for the likes of GGBs and BTPs.
• GGBs continue early ’25 outperformance, aided by fiscal/ratings trajectory and the PDMA’s conservative ’25 issuance target. Spread to Bunds further below 75bp, on track for another cycle closing low.
• BTPs have tightened by a similar amount, despite today’s dual-tranche syndication, with expectations for solid demand evident. Spread to Bunds nearing 110bp, a level not closed below since December 11.
• PGBs the laggard this morning, widening by ~1bp, perhaps driven by expectations for a PGB syndication announcement.
• OATs little changed vs. Bunds, spread 78.5bp.

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).