CONSUMER STAPLES: Japan Tobacco: Guidance

• Treasuries sit mildly twist flatter having pared further large dovish moves with and shortly after the Asia open. The subsequent shift off highs has come with some stabilization in equities after yesterday’s heavy declines on growth concerns emanating from US policies.
• Today sees further labor data headlining the docket with the January JOLTS report, but with upcoming CPI/PPI reports on Wed/Thu looming large. It’s followed by 3Y supply after last month’s auction stopped through by 1.2bp along with a sizeable rise in indirect take-up.
• Cash yields range from 1.4bp higher (2s) to 0.3bp lower (30s).
• 2s10s sits at 31.9bp (-1.4bp) as it remains within recent ranges having steepened in early March.
• TYM5 is back little changed on the day at 111-09+ (-01) having pulled back from highs of 111-25, with heavy cumulative volumes of 635k.
• The trend structure remains bullish and the overnight high cleared resistance at 111-15 (Mar 5 high) to open 112-01 (Mar 4)/112-02 (Fibo projection).
• Data: JOLTS Jan (1000ET)
• Coupon issuance: US Tsy $58B 3Y Note Auction - 91282CMS7 (1300ET)
• Bill issuance: $70B 6W bill auction (1130ET)

You are invited to listen to a Livestreamed MNI Connect Video Conference with Olli Rehn, Governor of the Bank of Finland & Member of the Governing Council, Europe.

Details below:

• TOPIC OF DISCUSSION: ‘Eurozone economy and ECB monetary policy’
• DATE: Tuesday 18 March
• TIME: 09:00 - 10:15 GMT
• This event will be run as a Zoom Webinar and is a public, on-the-record event.

To register please go to: MNI Webcast Registration

• Spread set at 0.125% Aug-48 linker (GB00BZ13DV40) + 1.0bp (Guidance was +1.0/1.5bps)
• Size: GBP5.0bln (larger than the GBP4.0-4.5bln MNI expected) - MNI note: This is the largest ever gilt linker syndication
• Books in excess of GBP67.5bln (inc JLM interest of GBP4bln) - MNI note: That is the largest ever book for a gilt linker syndication
• Maturity: 22 September 2049
• ISIN: GB00BT7J0134
• Coupon: 1.875%, long first
• Settlement: 12 March 2025 (T+1)
• JLMs: BofA Securities, J.P. Morgan, Lloyds Bank Corporate Markets (B&D/DM), and UBS Investment Bank
• Timing: Books closed, pricing later today

From market source / MNI colour