NBP: Governor Guides That MPC May Cut Rates If Lower CPI Trend Is Confirmed
Apr-03 13:50
Governor Adam Glapinski says that the MPC authorised him to guide that an interest-rate adjustment is possible "in the nearest period," and quickly clarifies that it would mean a reduction, whether it would be a one-off move or a start of a cycle. The MPC stands ready to act if the lower CPI trend is confirmed.
- Summarising his press conference, the Governor says that the dovish tone of his comments and yesterday's MPC statement stems from the fact that inflation is significantly lower than expected, core inflation has decreased markedly, wage growth has slowed, activity data are weaker than expected, while global oil prices fell.
- Paying lip service to the NBP's mandate, the Governor says that "the MPC asked [me] to relay that it remains determined to bring inflation to the target over the medium term."
- The Governor reminds that any information on potential votes (i.e. whether they were held and what were the vote splits) remains confidential until the release of the voting record.
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PIPELINE: Corporate Bond Issuance Update
Mar-04 13:50
- Date $MM Issuer (Priced *, Launch #)
- 03/04 $3B #KFW +3Y SOFR+29
- 03/04 $1B KommuneKredit WNG 5Y SOFR+47a
- 03/04 $500M OneMain Finance 7NC3
- 03/04 $Benchmark First Horizon 6NC5 +175a
- 03/04 $Benchmark 3M 5Y +90a, 10Y +110a
- 03/04 $Benchmark VeriSign +7Y +145a
GILTS: Fresh Net Short Set Monday, Pressured Today As Offshore News Dominates
Mar-04 13:48
OI data points to ~7K fresh net shorts being added in gilt futures during yesterday’s sell off, with price action in the first session of the week largely shaped by external factors (German fiscal speculation and U.S. data).
- Offshore developments continue to shape gilt trade today, putting pressure on the shorts established yesterday.
STIR: SOFR Call Fly Sale
Mar-04 13:43
- -20,000 SFRZ5 96.25/96.75/97.25 call flys, 7.5 ref 96.41
