EQUITIES: Longer dated Estoxx put spread

We had been flagging the possibility of a Belgian syndication this week, but we thought it was more likely that we would see a 30-year OLO launched in March rather than the long 15-year announced today (June 2042)

• We pencil in a transaction tomorrow with a E4-6bln size expectation.

SOFR FIX - Source BBG/CME

• 1M 4.32139 -0.00332
• 3M 4.30971 -0.00707
• 6M 4.23228 -0.02447
• 12M 4.07493 -0.05179

• In the equity space, recent weakness in the S&P E-Minis contract has resulted in a breach of a number of important supports; 6014.00, the Feb 10 low, and 5935.50, the Feb 3 low. The sharp move down signals scope for a deeper retracement and has exposed the next key support at 5809.00, the Jan 13 low. The contract is trading higher today, extending Friday’s bounce. Initial firm resistance to watch is 6038.96, the 50-day EMA.
• The trend condition in the EUROSTOXX 50 futures contract remains bullish and - for now - the latest shallow retracement appears corrective. The contract has pierced support at the 20-day EMA, at 5417.56. A clear break of this average would signal scope for a deeper retracement - note that the 50-day EMA lies at 5266.18. The EMA represents a key area of support. For bulls, a stronger resumption of gains would open 5574.57 next, a 2.382 projection of the Nov 21 - Dec 9 - 20 ‘24 price swing.